Govt aims at 70% indigenous procurement for defence industry

Currently, indigenous contents account for about 40-42% of total procurement

The Department of Defence Production aims to increase the indigenous component in the total capital procurement to about 70 per cent in next five years.

“At present, the indigenous contents account for about 40-42 per cent of the total procurement and we are targeting to enhance it to around 70 per cent in next five years”, said Secretary, Defence Production, G C Pati.

Pati was in the city to attend the vendor development-cum-buyer seller interaction meet organized by Confederation of Indian Industry (CII) on the occasion of Enterprise Odisha 2013.

Vendors such as Hindustan Aeronautics Ltd (HAL), Ordinance Factory, Badamal and Garden Reach Shipbuilders & Engineers Ltd, Kolkata, participated in the meet.

He said, the Defence ministry has advised the defence PSUs and ordinance factories to substantially expand their activities relating to indigenization and R&D efforts taking into account the technological perspective of the armed forces and develop mechanism to associate Micro, Small and Medium Enterprises (MSMEs) along with the registered vendors.

The amendment of Defence Procurement Procedure-2013 is expected to give an impetus to indigenization, he added.

It may be noted that out of 76 vendors of HAL in Koraput district, only five are from Odisha. Pati felt the potential for local procurement in the area was more.