Govt simplifies process for manufacturing arms

New Delhi: The defence ministry’s top procurement panel, the Defence Acquisition Council (DAC), on Tuesday, simplified procedures for developing and manufacturing of military equipment through the domestic industry in the ‘Make II category’ to “encourage participation of private sector in defence design and production and to give a boost to ‘Make in India’ programme”.

Chaired by defence minister Nirmala Sitharaman, the apex meeting also cleared the procurement of 72,400 assault rifles and 93,895 carbines on fast track basis for '3,547 crore to enable the defence forces to meet their immediate requirement for the troops deployed on the borders.

“Considering that no government funding is involved in ‘Make II’ project, the DAC simplified the procedure to make it industry friendly, with minimal government control. The salient aspects of the revised procedure will now allow ministry of defence to accept suo-motu proposals from the industry and also allows start-ups to develop equipment for Indian Armed Forces. The minimum qualification criteria to participate in ‘Make II’ projects has also been relaxed by removing conditions related to credit rating and reducing financial net worth criteria,” a ministry release said.

In the earlier ‘Make II’ procedure, only two vendors were shortlisted to develop prototype equipment. Now, all vendors meeting the relaxed eligibility criteria will be allowed to participate in the prototype development process. The vendor will not be required to submit Detailed Project Report.