INDOUS HIGH TECHNOLOGY COOPERATION GROUP MEETING WASHINGTON DC

INDO-US HIGH TECHNOLOGY CO-OPERATION GROUP MEETING WASHINGTON DC 18 -19 November 2004

MINISTRY OF DEFENSE DEPARTMENT OF DEFENSE PRODUCTION DEPARTMENT OF DEFENSE RESEARCH & DEVELOPMENT 2

THE DEPARTMENT OF DEFENSE • Headed by the Defense Secretary • Deals with the Integrated Defense Staff the three services & various inter-service organizations • Responsible for defense budget, defense policy, matters relating to Parliament, defense cooperation with foreign countries and coordination of all activities 3

THE DEPARTMENT OF DEFENSE PRODUCTION • Headed by the Secretary Defense Production • Deals with matters pertaining to defense production, indigenisation of imported stores, equipment & spares • Planning & control of departmental production units of the Ordnance Factory Board & the Defense Public Sector Undertakings (DPSUs) 4

The Department of Defense Production oversees the following : 39 Ordnance Factories 8 Defense Public Sector Undertakings (DPSUs) - Hindustan Aeronautics Limited (HAL) - Bharat Electronics Limited (BEL) - Bharat Earth Movers Limited (BEML) - Mazagon Dock Limited (MDL) - Goa Shipyard Limited (GSL) - Garden Reach Shipbuilders & Engineers Ltd. - Bharat Dynamics Limited (BDL) - Mishra Dhatu Nigam Limited (MIDHANI) 5

Quality Assurance Directorate of Standardization Defense Exhibition Organization Indigenisation Private Sector participation in Defense Production 6

THE DEPARTMENT OF DEFENSE RESEARCH & DEVELOPMENT • Headed by the Secretary Defense R& D, who is also the Scientific Advisor to the Defense Minister & Director General of Defense Research & Development Organization (DRDO) • Advise the government on scientific aspects of military equipment • Formulation of research & development plans for equipment used by the services 7

Defense Research & Development Organization (DRDO) Has a Vision of Empowering India with cutting-edge defense technology And a Mission of Self-reliance in critical defense technologies and systems indigenisation and innovation by While Equipping the Armed Forces with state-of-the-art weapon systems and equipment In partnership with : The Industry, the Academia and other R & D centers in abroad India and 8

ver the past 30 years of DRDO activity, a number of ystems have been developed and are in use with the ountry’s armed forces. Some of the products are listed elow: - Field Guns & Mortars Small Arms and Ammunition Armaments Radars Sonars Electronic Warfare Systems Digital Communication Network Combat Vehicles Bridges & other Engineering Support Advanced Materials 9

SOME OF THE MAJOR SYSTEMS DEVELOPED BY DRDO ARE: - Main battle tank Light Combat Aircraft Torpedoes Anti Submarine Warfare Systems Lakshya – Aerial Target System Unmanned Aerial Vehicle 10

Work is also in progress in the development of major sub-systems and technologies: - Aero engines Multimode Radar Composites and armour Micro-electronics Night Vision Systems Signal and Data Networks Simulators Artificial Intelligence Systems 11

LABORATORIES IN DEFENCE RESEARCH & DEVELOPMENT ORGANISATION • Aeronautical - 6 • Armament - 8 • Combat Vehicles & Engineering Group - 4 • Computer Science - 6 • Electronics & Instrumentation - 7 • Life Sciences - 8 • Materials - 5 • Naval Systems - 3 12

Quickening the Pace of Technology Advance The Ideal Bond R&D Academia • Active Industry Participation • Goal- / Product Oriented Research • Mature Technologies • Product Orientation Industry • Applied R& D • Product Upgrade 13

DRDO Efforts for Industry Synergy Defense Public Sector Units DRDO– PSUs initiatives Program / project reviews Multi – tier management boards DRDO representatives in PSU boards Private Industry Interaction through programs / projects DRDO – industry associations initiative 14

Landmarks in DRDO-Industry Interface • Light Combat Aircraft (LCA) • Multi Barrel Rocket System – Pinaka • Main Battle Tank - Arjun • Sarvatra – Multi-Hop Assault Bridging System • Bridge Layer Tank (BLT) T-72 • Mat Fording CL – 70 (MGS) 15

Enhanced Industry Participation Involve industry as prime production agency from the beginning Industry to take up LSP orders Firm commitment from user Explore export opportunities to increase volume of production R & D support of DRDO and academia throughout product life cycle 16

Private Sector Participation in Defense Production • The objective is to pool capital, manpower resources and industrial infrastructure available outside the public sector & facilitate development of full-fledged Defense industrial complex in the country to achieve self-reliance. • In May 2001, GOI decided to open Defense Production to Indian Private Sector with FDI up to 26% subject to licensing • In Jan 2002, the Department of Industrial Policy & Promotion (DIPP) issued guidelines for licensing production of Arms & Ammunition 17

Present Scenario • 39 applications have been received from private companies for manufacture of various types of Defense equipment • 18 Letters of Intent/Industrial Licenses have been issued by the DIPP • Proposals submitted by Indian industry to MOD for effective amalgamation of Indian private sector in the planning & acquisition process 18

Defense –Industry Partnership Meets • Defense-Industry Partnership Meets are organized at regular intervals to share information with the private industry regarding the requirements of the Defense Production agencies and the different wings of the armed forces to help the private industry to prepare proper investment plans • In these meets, various Defense Establishments namely DGQA, DRDO, Ordnance Factory Board also participate 19

New Initiatives taken by MOD, GOI • Constitution of Defense Acquisition Council headed by the Defense Minister -Accord “in principle” approval of capital acquisitions in long term perspective plan and for each capital acquisition program • The decisions of the Council are to be implemented by the following three Boards : -Defense Procurement Board -Defense Production Board -Defense Research & Development Board 20

• A Defense Acquisition Wing headed by Special Secretary (Acquisition) has been created to assist the Defense Procurement Board • Defense Technology Council (DTC) has been constituted under the Chairmanship of the Defense Minister to provide guidance and supervision of growth & promotion of research, development and production related to Defense Technologies • DTC will assist Defense Acquisition Council in taking holistic decisions on specific Defense Projects related to long term perspective plan 21

A Committee under the Chairmanship of Dr. Vijay Kelkar has been constituted by GOI : • To examine & make recommendations on changes required in the procedure of acquisition/procurement of Defense equipment to modify it on an approach based on “Products Strategy” • To suggest modalities for integration of user, MOD and the Indian Industry including R & D • To recommend changes required to facilitate Ordnance Factories & Defense PSUs to assume the role of designer and integrator of large defense systems. 22

THANK YOU 23

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