informally identified a
hundred "Make" category projects, not a single one has actually entered
development. A year ago, the MoD's Acquisition Wing head had announced that
150-180 "Make" category projects would be identified and put up on
the MoD's website. But with nothing having been done towards this, and with the
defence budget for the next year slashing funding for this, indigenisation is
set to remain a slogan rather than a reality.

Thursday, 7 March 2013

Indigenous defence projects allocated just Rs 1 crore, down from Rs 89 crore
last year

By Ajai Shukla

Business Standard, 7th Mar 13

The Defence
Budget for 2013-14 starkly underlines the gap between the minister's
proclamations about the need to indigenise defence equipment on the one hand,
and the money his ministry allocates for developing equipment on the other.

On February
20, buffeted by allegations of wrongdoing in theMinistry of Defence (MoD)'s Rs
4,000-crore purchase of VVIP helicopters, Minister A K Antony declared the
indigenisation was essential to eliminate corruption in arms procurement.

Just eight
days after, it was clear this would not be pursued seriously, at least during
the coming financial year. In the Defence Budget for 2013-14, the 'Prototype
Development' head, from which indigenous projects are funded, was allocated
just Rs 1 crore, down from Rs 89 crore in the previous year.

The
allocations for 'Prototype Development' are made under Major Head 4076 of MoD Demand
No 27, Capital Outlay on Defence Services.

This
allocation is intended to fund 'Make' category projects, i.e. defence systems
developed by consortiums led by Indian companies, with the MoD financing 80 per
cent of the cost. Currently, the MoD is processing two 'Make' category projects:
a Tactical Communications System (TCS), a mobile communications