There are 41 ordnance factories (OF) and nine defence public sector undertakings (DPSU) in our country that contribute more than Rs 58,000 crore to defence production every year.
The Centre is supporting DPSUs and OFs to expand their activities and has issued 439 licenses covering 264 private companies till March 2019. Industrial licences are issued for the manufacture of tanks and other armoured fighting vehicles, defence aircraft, spacecraft and allied items of defence equipment. Also, for a large number of defence components, no license is required.
The ‘Make in India’ procedure has been simplified with provisions for funding of 90 per cent of the development cost by the government and reserving projects not exceeding development cost of Rs. 10 crores (government-funded) and Rs. 3 crore (industry funded) for MSMEs. Read More