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DAILY NEWS ANALYSIS

  • 18 May, 2020

  • 5 Min Read

Defence Testing Infrastructure Scheme

Defence Testing Infrastructure Scheme

Part of: GS-III- CULTURE (PT-MAINS-PERSONALITY TEST)

Recently, the government has approved the launch of ‘Defence Testing Infrastructure Scheme (DTIS)’ in order to give a boost to domestic defence and aerospace manufacturing.

The Government has accorded high priority to development of the manufacturing base of Defence and Aerospace sectors in the country under “Make in India” initiative to reduce dependence on imports.

  • In the above context, the government has already announced establishment of Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu.
  • But, still one of the main impediments for domestic defence production is lack of easily accessible state-of-the-art testing infrastructure.
  • Defence Testing Infrastructure is capital intensive requiring continuous upgradation and it is not economically viable for individual defence industrial units to set up in-house testing facilities.

Objectives

  • The Scheme aims to promote indigenous defence production, with special focus on participation of MSMEs and Start Ups by bridging gaps in defence testing infrastructure in the country.
  • It will also help to provide easy access and to meet the testing needs of the domestic defence industry.
  • It will facilitate indigenous defence production, consequently reduce imports of military equipment and help make the country self-reliant.

Finance and Cooperation:

  • The Scheme has an outlay of Rs 400 crore for creating state of the art testing infrastructure over the duration of five years. It envisages to set up test facilities in partnership with private industry.
  • The projects under the Scheme will be provided with up to 75% government funding in the form of ‘Grant-in-Aid’.
  • The remaining 25% of the project cost will have to be borne by the Special Purpose Vehicle (SPV) whose constituents will be Indian private entities and State Governments.
    Only private entities registered in India and State Government agencies will qualify for forming the implementation agency for the Scheme.
  • The SPVs under the Scheme will be registered under Companies Act 2013.

Location of DTISs

The Scheme aims at setting up Greenfield Defence Testing Infrastructure mainly in DICs but is not limited to setting up Test Facilities in the DICs only.

Source: PIB

  • 16 May, 2020

  • 8 Min Read

Defence Testing Infrastructure Scheme

Defence Testing Infrastructure Scheme

  • The projects under the scheme will be provided with up to 75% government funding in the form of ‘Grant-in-Aid’.
  • Defence Testing Infrastructure Scheme (DTIS) is launched with an outlay of ?400 crore for creating state-of-the-art testing infrastructure for domestic defence and aerospace manufacturing sector.
  • The Scheme would run for the duration of five years and envisages to set up six to eight new test facilities in partnership with private industry.
  • This will facilitate indigenous defence production, consequently reduce imports of military equipment and help make the country self-reliant.
  • The projects under the scheme will be provided with up to 75% government funding in the form of ‘Grant-in-Aid’; the remaining 25% of the cost will be borne by the Special Purpose Vehicles (SPV), whose constituents will be Indian private entities and State Governments.
  • The SPVs under the scheme will be registered under the Companies Act, 2013 and shall also operate and maintain all assets under the scheme in a self-sustainable manner by collecting user charges.
  • The equipment and systems tested will be certified as per appropriate accreditation.
  • While a majority of test facilities are expected to come up in the two Defence Industrial Corridors (DICs), the scheme is not limited to setting up such facilities in the DICs only.

Defence Industrial Corridors

In pursuance to the budget announcement (2018-19), it has been decided to set up two Defence Industrial Corridors in the Country, one in Uttar Pradesh and another in Tamil Nadu.

Investments of approximately Rs 3,700 crore were announced by Ordnance Factory Board (OFB/Defence Public Sector Undertakings (DPSUs) & Private Industries for Uttar Pradesh Defence Corridors and investment of approx Rs 3,100 crore were announced by OFB/DPSUs & private industries for Tamil Nadu Defence Corridor.

Further, Government has also appointed a consultant for the preparation of policy and Detailed Project Report (DPR) for these two Defence Corridors. Incentives to private players and foreign companies are provided under the respective state policies.

Source: TH


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