July 28, 2014

69 percent of military requirements sourced from Indian companies'

Sixty-nine percent of the military requirements in the last three years were sourced from Indian public and private sector companies, the Lok Sabha was informed Friday.

Detailing the methodology for assessing indigenous content of equipment, Minister of State for Defence Rao Inderjit Singh said this had been arrived at, as indicated by the Defence Procurement Procedure, 2013, by excluding from the total cost the following elements at all stages of manufacturing/production/assembly:

* Direct costs (including freight/transportation and insurance) of all material, components, sub-assemblies, assemblies and products imported into India

* Direct and indirect costs of all services obtained from non-Indian entities/citizens

* All licence fees, royalties, technical fees and other fees/payments paid out of India by whatever term/phrase referred to in contracts/agreements made by vendors/sub-vendors

* Taxes, duties, cesses, octroi and any other statutory levies in India of this nature

The data furnished is for the years 2010-11, 2011-12 and 2012-13.

Inderjit Singh said defence requirements are currently met 'both through indigenous sources as well as imports. While efforts are being made to enhance domestic production to meet the requirements, imports are being resorted to take care of urgent requirements of equipment/weapons and other products required... for which the domestic production is non-existent or inadequate'.

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