Defence production, India: 2 (ministry data)

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This article has been sourced from an authoritative, official <br/>publication.  Therefore, it has been ‘locked’ and will never be <br/> thrown open to readers to  edit or comment on.<br/>
 
This article has been sourced from an authoritative, official <br/>publication.  Therefore, it has been ‘locked’ and will never be <br/> thrown open to readers to  edit or comment on.<br/>
  
After the formal launch of their online archival encyclopædia, <br/> readers who wish to update or add further details can do so on <br/> a ‘Part II’ of this article.  </div>
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After the formal launch of their online archival encyclopædia, <br/> readers who wish to update or add further details can do so on <br/> a ‘Part 3’ of this article.  </div>
 
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==The source of this article==
 
==The source of this article==
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[[File: India's military-industrial complex lies overwhelmingly in the public sector .jpg| India's military-industrial complex lies overwhelmingly in the public sector |frame|500px]]
  
 
==PRIVATE SECTOR PARTICIPATION IN DEFENCE PRODUCTION==
 
==PRIVATE SECTOR PARTICIPATION IN DEFENCE PRODUCTION==
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provided for the entire duration of the course Rs Rs. 1250 per month for boys and
 
provided for the entire duration of the course Rs Rs. 1250 per month for boys and
 
Rs 1500 for girls, paid annually.
 
Rs 1500 for girls, paid annually.
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=See also=
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[[Defence production, India: 1]] 
  
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[[Defence production, India: 2 (ministry data)]]
  
=Nuclear-powered submarines=
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[[Defence procurement: India ]]
From the archives of '' The Times of India ''
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'''India is now 6th nation to have a nuclear sub'''
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India’s long hunt for a nuclear submarine is finally over. But it will take the country another 10-12 months to get an operational nuclear weapon triad — the capability to fire nukes from land, air and sea.   
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India became the world’s sixth country after the US, Russia, France, the UK and China to operate nuclear-powered submarines when the Russian Akula-II class submarine ‘K-152 Nerpa’ was commissioned into Indian  Navy as INS Chakra on a 10-year lease under a secretive almost $1-billion contract inked in 2004.    The 8,140-tonne INS Chakra, however, is not armed with long-range nuclear missiles, like the Russian SS-N-21 cruise missiles with an over 2,500km range, due to international nonproliferation treaties like the Missile Technology Control Regime.
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''‘INS Chakra can outrun any Pak, Chinese subs’''
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The Indian nuclear triad’s elusive underwater leg will only come when the homegrown nuclear submarine, the over 6,000-tonne INS Arihant equipped to carry a dozen K-15 (750km) or four K-4 (3,500km) ballistic missiles, becomes fully operational by early-2013. India has the land and air legs in the shape of the Agni series of missiles and fighter jets capable of carrying nuclear weapons.    Defence ministry sources said INS Chakra, commissioned at the Primorye region in far south-eastern Russia in a ceremony attended by top Indian and Russian officials, would soon set sail for India. It will be based at Visakhapatnam, next to where INS Arihant is slated to begin extensive sea trials after the ongoing harbour-acceptance trials.
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==2012: India gets a nuclear-powered submarine==
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From the archives of '' The Times of India ''
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Rajat Pandit
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'''Talks on with Russia for 2nd N-sub: Antony'''
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The 8,140-tonne steel shark floated menacingly, tethered to the jetty, as if waiting to break free. Soon, it will, to prowl silently underwater for extended periods hunting for enemies to track and kill.  The nuclear-powered attack submarine INS Chakra, with lethal “hunter-killer’’ and intelligence-gathering capabilities, was formally inducted into Indian Navy on a 10-year lease from Russia at a cost of around $1 billion on Wednesday.  Defence minister A K Antony, Navy chief Admiral Nirmal Verma and Russian ambassador Alexander M Kadakin, among others, all extolled the submarine as a “shining example’’ of the deep and abiding “strategic partnership’’ between India and Russia during the “welcome’’ ceremony at the highly-guarded Ship-Building Centre here.  INS Chakra, with a dived displacement of 12,000-tonne, will, however, not give India its long-awaited third leg of the nuclear weapons triad since it’s not armed with longrange strategic missiles due to international treaties.  That will only happen after the country’s own homegrown nuclear submarine INS Arihant, armed with the nuclear-tipped K-15 missiles, is inducted into service sometime next year.  But INS Chakra, propelled by a 190MW nuclear reactor for a maximum speed of around 30 knots, will give India the capability to deploy a potent weapons delivery platform, armed as it is with 300-km Klub-S land-attack cruise missiles and advanced torpedoes, at a place of its choosing at long distances with lot of stealth.  “We can outrun and overcome any adversary in our neighbourhood,’’ said a confident INS Chakra’s captain P Ashokan. Admiral Verma said the 100-metre INS Chakra had propelled India into a select group of countries like the US, Russia, France, the UK and China, to operate nuclearpowered submarines.  China’s growing maritime presence in the Indian Ocean region (IOR), coupled with its increasing assertiveness in the entire Asia-Pacific region, is obviously a big worry for India. Antony downplayed the China angle as is his wont. “Induction of INS Chakra, or other warships, is not aimed at any country,’’ he said.  Nuclear-powered submarines can operate underwater for long periods, with normal patrols stretching to up to 70 days, unlike the conventional diesel-electric submarines that have to surface every three to four days to get oxygen to recharge their batteries.  Antony not in race for Prez, says he’s not a ‘mad man’  am not a mad man. I am a Irealist and I know my limitations,” was how defence minister A K Antony reacted when asked whether he was a candidate for the Presidential elections. “There should be a limit to ambition... That is madness,” he said, ruling himself out of the race for Presidential elections in July
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=Private sector production=
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Private-firms-in-India-play-a-measly-role-10122014024022''The Times of India'']
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Rajat Pandit, December, 10 2014
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''' Share of private sector in providing equipment just 4% in last 3 years '''
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[[File:pp.jpg||frame|500px]]
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From Boeing to Lockheed Martin, BAE Systems to Airbus, the private sector dominates arms production the world over. The reverse is true in India, with the public sector continuing to huff and puff but still failing to rid the country of the dubious tag of being the world's largest arms importer.
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Latest statistics, tabled by defence minister Manohar Parikkar in Parliament on Tuesday show the share of the Indian private sector in providing equipment to the armed forces was a measly 3-4% over the last three years.
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If we consider the Rs 36,918 crore spent on capital acquisitions for the IAF in 2013-2014.While the imports stood at Rs 20,928 crore (56.69%), the public sector delivered equipment worth Rs 15,447 crore (41.84%), with the private sector contributing just Rs 544 crore (1.47%). Similarly, the private sector's share for the Army was just 1.91% in 2013-2014.
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Experts say greater participation by Indian private sector companies, alone or in joint ventures with global firms, is required if India wants to build a strong defence-industrial base (DIB).
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The Modi government promises to do just that. With India attracting a paltry Rs 24.36 crore ($4.94 million) as FDI in the defence sector in the last 14 years, the FDI cap has now been hiked to 49% and the “Make in India“ policy is being aggressively pursued.
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The defence ministry is working towards streamlining the complicated “Make“ procedure for indigenous R&D, development and production of weapon systems.
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But it will take a lot of doing. On one hand, DRDO and its 50 labs, five defence PSUs, four shipyards and 39 ordnance factories continue to fail to deliver goods for the armed forces. On the other, the private sector is yet to make a substantial contribution.
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=Indigineous defence equipment=
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==Defective equipment==
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[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=429-types-of-desi-def-equipment-defective-05012015007014 ''The Times of India'']
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[[File: defence.jpg| Indigineous defence equipment |frame|500px]]
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Jan 05 2015
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Chethan Kumar
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''' Rs 449 cr items sent back for rectification in 3 years '''
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The Modi government, which has given a war cry for `Make in India' in the defence sector, has a major battle to win within the country before guarding the borders with home-made equipment. For, 429 types of defence equipment worth Rs 449.40 crore have been sent back to domestic ordnance factories in the past three years due to quality issues.
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According to documents TOI has accessed, this includes 162 types of weapons, which can range from rifles to rocket launchers, 16 categories of combat vehicles, and 52 types of ammunition, the shortage of which has been worrying the world's second largest land army .
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The defence ministry said the Directorate General of Quality Assurance, which provides second-party quality assurance, has returned these equipment for rectification.
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Each of these categories could have seen thousands or lakhs of units being sent back.“Let's take an example of a bullet for an assault rifle.Lakhs of such bullets would've been procured and all of them rendered useless if they didn't meet the quality requirements,“ a Lieutenant Colonel told TOI.
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The documents revealed that as of the third week of December 2014, the ammunition had quality issues, severely affecting the forces' ability at a time when ceasefire viola tions by Pakistan and intrusions from China pose threats.
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“The fact that the Ordnance Factory Board and the factories cleared them is a matter of concern,“ another officer said.
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In 2013-14, equipment worth Rs 144.65 crore was returned for rectification (RFR), an increase of Rs 12.06 crore from 2012-13. The cost of equipment under RFR in 201213 (Rs 132.59 crore) had seen a considerable drop from 201112 (Rs 172.16 crore).
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=Hyderabad in Defence Production=
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[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Hyd-tech-puts-aerospace-defence-mfg-in-new-15082015021006 ''The Times of India''], Aug 15 2015
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Swati Rathor
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''' Hyd-tech puts aerospace, defence mfg in new orbit '''
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Not many would be aware that the cabin of the Sikorsky S-92 chopper that ferries the US President Barack Obama is made in Hyderabad, as also some crucial components powering Isro's interplanetary craft to Mars, Mangalyaan.
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When Andhra Pradesh lost the Tata Nano project in 2008, it came as a blessing in disguise for the state. Hyderabad's aerospace and defence manufacturing sectors were propelled into a new orbit as Ratan Tata promised the government that he would park a project no less prestigious in the state.
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Tata kept his promise, and that's how Tata Advanced Systems Ltd set up its facility at India's first aerospace SEZ at Adibatla on Hyderabad's outskirts ­ putting the city on the global defence and aerospace map through joint ventures with Lockheed Martin and Sikorsky of US, and Swiss player RUAG investing, over Rs 4,000 crore.
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Hyderabad's second wave of investments in this sector have made it the biggest challenger to Bengaluru's supremacy in aerospace and defence sectors.
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While Bangalore emerged as aeronautics hub thanks to HAL (which has a small presence in Hyderabad), Hyderabad has a stronger missile base. Its foundation was laid after the 1962 Sino-Indian border war when premier institutes like Defence Research and Development Organisation (DRDO), Defence Research and Development Lab oratory (DRDL) and Research Center Imarat (RCI), among others, were set up in the city , considered “safe“ for its distance from the country's then troubled borders.
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“Small and medium enterprises making components for these defence institutions have now started building sub-systems as well as systems for them. These institutions have also ensured a steady flow of talent for the sector which requires highly-skilled manpower,“ said G Satheesh Reddy , scientific adviser to the defence minister. Over 70% of components for Akash missiles too are being sourced from Hyderabad SMEs, Reddy added.
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In fact, Hyderabad's strong base of over 1,000 SMEs coupled with IT firms catering to the aerospace segment have proved to be a major draw for global aerospace giants. This is also what perhaps prompted Boeing to bet on Hyderabad in partnership with the Tatas.
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“Hyderabad's strategic advantages are its emerging industrial base, infrastructure and availability of skilled manpower,“ said Boeing India president Pratyush Kumar.“All these are critical to develop a competitive aerospace and defence base, and we took this into consideration while signing a framework agreement with TASL to collaborate in aerospace and defence, including UAVs,“ Kumar added.
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Boeing is currently working with Hyderabad-based Avantel on mobile satellite systems for the P-8I military aircraft and Cyient Ltd (formerly Infotech Enterprises) for many of its commercial airplane projects.
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This ecosystem is also giving wings to the multi-billion dollar maintenance, repair, and overhaul (MRO) sector in the city. In May 2015, Air India set up its Rs 80-crore MRO at the Hyderabad International Airport, even as the 250-acre GMR Aerospace Park SEZ housing GMR's MRO Facility services narrow bodied aircraft like Airbus A 320 and Boeing 737, among others.
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“Hyderabad is important also from the maintenance perspective as it has been a base maintenance station of erstwhile Indian Airlines from very early days,“ said HR Jagannath, CEO, Air India Engineering Services Limited (AIESL).
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“The required manpower and higher level of tools, equipment, processes and systems necessary to carry out higher level checks on the aircraft were already available.Hyderabad is now being seen as a major maintenance hub for captive work load of Air India as well as third party business,“ Jagannath added.
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Now, US-based Pratt & Whitney is gearing up to launch its third global centre after US and China for training aircraft engineers and technicians near Hyderabad airport.
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To keep the sector cruising, the Telangana government is not only setting up the state's second aerospace park spread over 1,000 acres at Elimenidu on Hyderabad's outskirts, but is also giving finishing touches to an aerospace policy to be announced in November, said Telangana IT secretary Jayesh Ranjan.
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=2015: Defence purchase=
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[http://indiatoday.intoday.in/story/rafale-jets-modi-indian-air-force-order-of-battle-mig-iaf-shekhar-gupta/1/430556.html ''India Today'']
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[[File: India’s defence exports, 2013-16, country-wise and year-wise.jpg| India’s defence exports, 2013-16, country-wise and year-wise; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-India-sells-the-bulk-of-its-defence-02082016009024 ''The Times of India''], August 2, 2016|frame|500px]]
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April 27, 2015
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Shekhar Gupta
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''' Defence deals create controversy because they are small, piecemeal, with many vendors. India must get over its post-Bofors paranoia '''
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Prime Minister Narendra Modi's dramatic purchase of 36 Rafale jets has drawn extreme comments. One, that this is a bold, gutsy decision of a leader who is not afraid to break the multiple logjams in defence acquisitions. Two, that it is a panicky decision to fill a crucial gap in a fast-depleting Indian Air Force Order of Battle (ORBAT) with obsolescence of the entire MiG series (MiG-29 apart), and is typical of our bandaid-tourniquet doctrine of defence purchases.
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This is a gutsy decision which breaks a stalemate and ends, at least for the moment, the vicious lobbying, leak-versus-leak battles in New Delhi. But there is also merit to the second view. How did India paint itself into such a corner, weakening its strategic posture? It ended up making possibly a $5 billion purchase off-the-shelf in a wartime-like haste, embarrassing for the aspiring globaliser fielding the world's fourth largest army and listed, traditionally, as the top military importer in the world.
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Stockholm-based SIPRI, which estimates import data in terms of constant 1990 value dollars, puts the value of India's total arms imports in five years (2010-14) at a little over $21 billion, and about three times the second largest, Saudi Arabia. Pakistan is a little bit behind, with just over a fourth of India's arms import bill, although that figure could need some correction for the complexities of putting a realistic value of imports from the US and China, both "special relationship" suppliers. The SIPRI figures look accurate if we compare them with the only reliable rupee data available with us, in the form of answers to Parliament questions: Arun Jaitley said India's arms imports were around Rs 83,000 crore in the past three years, and Manohar Parrikar said Rs 1,03,000 crore in five years, or $16 billion. But if you think 1990 rupee-dollar, SIPRI' s $21 billion would be in the ballpark.
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Two points arise from this. First, that Modi's decision to order these Rafale jets off-the-shelf was wise and brave, like a senior doctor risking immediate surgery to save a deteriorating patient. The second is a question. How did the fourth largest military machine in the world get itself in the ICU in the middle of the night over a weekend needing emergency surgery?
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The most telling statement of all came from General V.P. Malik, in the early days of Kargil in 1999 when he said in frustration: "We will fight with what we have." He was the chief of one of the world's largest and finest armies.
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To delve into this maze of contradictions, one needs to write a couple of tomes. Some have been written too. My favourite is “Arming without Aiming”, jointly written by the foremost expert on South Asian militaries, Stephen P. Cohen, and Sunil Dasgupta (who worked with me in this magazine two decades ago as a young reporter learning to cover defence). Both are based at Brookings in Washington now and bemoan lack of a culture of strategic thinking and planning in India. The Indian doctrine, they imply, is purely tactical, episodic, immediate-need-based, and conforms to the basic Indian approach to all infrastructure: create shortages and then keep planning to deal with them. My own most telling insight on this sits in my rather flimsy personal archives. It is a handwritten note scribbled with a pencil on a scrap from Jaswant Singh. "I headed the parliamentary committee to examine India's military-strategic doctrine," wrote Jaswant Singh. "We concluded there was no strategy and no doctrine."
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There is zero evidence this has changed. Because if it had, we would not be buying frontline fighters off-the-shelf as if picking groceries at a supermarket after 17 years of debates, controversies and near-scandals. This has been the consistent history of our defence purchases except, say, a remarkable 1985-89 phase under Rajiv Gandhi which, sadly, became a problem and made our fear of buying an incurable virus. The result of this piecemeal approach is that our armed forces are under a constant stress with shortages. The same disease had plagued us during, and in the course of, every war, even if we leave out 1962 as an exception. We believe in 1971 Indira Gandhi and Jagjivan Ram gave the armed forces a free hand and time to build up fully before going to war. This included emergency, bulk import of used Soviet-made T-55 tanks from Poland, induction of heavy, but short-legged Sukhoi-7s for close support (it ended up with the highest attrition rate). And now, scholar Srinath Raghavan tells us in his wonderfully researched and written 1971: A Global History of the Creation of Bangladesh that on the eve of 1971 the government of our greatest anti-Zionist, pro-Palestinian leader ever, Indira Gandhi, secretly pleaded with the Israelis for crucial weaponry, including long-range mortars, though we did not have diplomatic relations with them. Of course, the Israelis helped as they had done twice in the past.
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Remember the initial setbacks IAF suffered in Kargil, when two MiGs and a Mi-17 attack helicopter were lost and all crew were killed, except one taken POW? A fourth, a sturdy photo-reconnaissance Canberra (since retired), was nursed back to base by a deft crew. All were hit by shoulder-fired missiles. It needs to be said that it was because IAF commanders were still operating in old derring-do, precise, daylight, low-level strike missions of the pre-missile age. The result was losses while very little was achieved with old-fashioned bombs, rockets and strafing. Once again, tactics changed after setbacks (recall the loss of all four obsolete Vampires sent out over Chamb in the first air battle of 1965, not to be used again in that war).
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Again in 1999, the IAF suffered no casualty in nearly 50 days of more effective operations after the first few. It not only changed tactics, but also imported-again from Israel in an emergency-laser pods to rig on Mirage-2000s to carry out precision bombing of Pakistani positions at night. If you scratch your memory, or look at archives, those are the videos the IAF displayed at one of the press conferences in the decisive phase of that war and when the tide turned.
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This isn't meant to be a comprehensive litany of our short-termism. It is to explore a limited question, with apologies to Erica Jong: Why this fear of buying? Since 1987, one reason is the Bofors syndrome. Every defence purchase is fraught, delayed or "thrown in orbit" as Lutyens description goes for sending a file into a permanent spiral of indecision. This makes New Delhi the easiest playground for arms dealers, middlemen (by whatever name you call them) and a new phenomenon, the dedicated, B-to-B, arms bazaar media. Public is confused between negotiations, shifting requirements, a constant whiff of scandal and a belief that the system is owned by this massive, evil arms trade. At the same time, we continue importing more than any other nation in the world. You want a paradox: A.K. Antony, our most risk-averse, most anti-US defence minister since 1991, ended up buying more from the US, and directly, on government-to-government basis and off-the-shelf (C-130s, C-17s, P-8Is) than in our entire independent history. Modi has resumed that de-risked, emergency buying tradition, though with great dash.
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The only way to fight phobias is to face them. It is fashionable to curse Rajiv for Bofors and more, but the truth is, 1985-89 was the only period in our history that weapon acquisitions were proactive, futuristic and redefined the largely defensive tactical doctrines until then. Sundarji's Brasstacks and Checkerboard were aggressive and aimed at delivering crushing blows in enemy territory than merely protecting your own. The fear of Bofors has blighted South Block since. But think. In a war even today, bulk of the hardware the three forces will field was ordered by Rajiv, from Mirages to T-72 tanks to new series MiGs, BMP armoured fighting vehicles and, of course, Bofors artillery. In these years our defence budget crossed that Lakshman Rekha of 4 per cent of GDP.
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Today it is well below 2 per cent of a growing GDP, and quite adequate. For a reality check, our five years' defence imports are two-thirds of our gold imports in a year and, more tellingly, less than a tenth of the import bill of Reliance Industries and about a seventh of Indian Oil Corporation, a PSU. But controversy dogs only defence imports not because they are huge, but because they are small, piecemeal, with many vendors, and the "system", wrapped-in-latex post-Bofors, is petrified of handling it. If you give up that fear, you can embark on another systematic modernisation as in 1985-89.
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=2016-17=
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[[File: Defence budget, 2016-17.jpg|Defence budget: 2016-17; Graphic courtesy: [http://epaperbeta.timesofindia.com//Article.aspx?eid=31973&articlexml=No-Budget-Army-struggles-to-raise-mountain-strike-07032016011031 ''The Times of India''], March 7, 2016|frame|500px]]
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Latest revision as of 16:38, 7 January 2018

This article has been sourced from an authoritative, official
publication. Therefore, it has been ‘locked’ and will never be
thrown open to readers to edit or comment on.

After the formal launch of their online archival encyclopædia,
readers who wish to update or add further details can do so on
a ‘Part 3’ of this article.


Contents

[edit] The source of this article

INDIA 2012

A REFERENCE ANNUAL

Compiled by

RESEARCH, REFERENCE AND TRAINING DIVISION

PUBLICATIONS DIVISION

MINISTRY OF INFORMATION AND BROADCASTING

GOVERNMENT OF INDIA

[edit] Defence Production: India

The Department of Defence Production was set up in November 1962 with the objective of developing a comprehensive production infrastructure for the defence of the nation. Over the years, the Department has established wide ranging production facilities for various defence equipment through the ordnance Factories and Defence PSUs. The products manufactured include arms and ammunition, tanks, armoured vehicles, heavy vehicles, fighter aircraft and helicopters, warships, submarines, missiles, ammunition, electronic equipment, earth moving equipment, special alloys and special purpose steels.

[edit] Ordnance Factories

The Ordnance Factory Board has 39 factories with two more being set up at Nalanda and Korwa. The organization has over the years progressed from labour intensive manual operations to Highly Automated Computer Based manufacturing systems and the emphasis has shifted from production of basic and intermediate inputs to production of finished stores and the organization has emerged as the system integrator.

Ordnance Factories are divided into 5 operating groups (i) Ammunition and Explosive, (ii) Weapons, Vehicles and Equipments, (iii) Materials and Components, (iv) Armoured Vehicles and (v) Clothing and equipments, each headed by Additional DGOF.

[edit] Defence Undertakings

Hindustan Aeronautics Limited (HAL) is a Navaratna company and the largest DPSU under the Department of Defence Production, Ministry of Defence. It has positioned itself as a comprehensive solution provider to the Indian Defence Services in aviation, spanning fighter aircraft, trainer aircraft and light helicopters. Around 90% of the sales of HAL is to the Indian Defence Services. The company is producing the following types of aircraft for the Air Force, Army, Navy and civilian requirements: SU-30MKI multirole fighter, Hawk - Advanced Jet Trainer, Light Combat Aircraft (LCA), Intermediate Jet Trainer (IJT), Dornier 228 - Light Transport Aircraft, Dhruv (Advanced Light Helicopter) and Cheetal/Chetak helicopters. Bharat Electronics Limited (BEL), a Navaratna PSU, was established at Bangalore in the year 1954. BEL ranks 62nd among top 100 companies worldwide in defence revenues, as published by Defence News, USA. BEL has nine operating units spread all over the country. The company has core competencies in areas of Radars, Weapon systems, Fonars, Communication, Electronic Warfare Systems,

Network Centric Systems, Electro Optics, Tank Electronics and Homeland Security systems. About 80% turnover of the company comes from these business segments. Apart from these areas, BEL manufactures specialised products like Electronic Voting Machines and large variety of Components like electron tubes, semiconductor devices, solar cells etc. BEL has strong R&D base that has enabled the organisation to maintain technological edge. Around 75% of the turnover is achieved from indigenous technology.

Garden Reach Shipbuilders & Engineers Ltd. (GRSE), a Mini Ratna Category I Public Sector Company, has kept pace with India’s expanding maritime interests and is recognised as a leading Shipbuilding Yard and manufacturer of high-value, high-technology, complex engineering items. Over the years, GRSE has gained expertise in construction of Warships for the Indian Navy, Ships and Hovercrafts. Apart from shipbuilding and ship repair, GRSE is one of the very few versatile shipyards having its own Engineering and Engine Division.

Goa Shipyard Ltd. (GSL) is the youngest and smallest of Defence shipyards. Over the years, GSL has designed and built a wide range of vessels for the defence and commercial sectors, with special expertise in designing and building modern Patrol Vessels of Steel and Aluminium hull. The product range includes Offshore Patrol Vessels, Special Purpose Warships, Survey Vessels, Fast Attack Craft, Sail training Ships, Offshore Supply Vessels, Ferries and Tugs. Other products and services include Damage Control Simulators, Safety at Sea Training facilities, repair and modernization of vessels, and GRP boats. The seven Fast Patrol Vessels (FPVs) currently in service with the Indian Coast Guard are an in-house product of GSL.

Hindustan Shipyard Limited (HSL) has so far built 163 ships, including 11 offshore structures, and repaired nearly 1850 ships of various types. The shipyard has also built Offshore Patrol Vessels and Inshore Patrol Vessels for Indian Navy and Drill Ship, Offishore Platform and support vessels for the oil sector. In order to modernize the shipyard and prepare HSL to undertake the construction of highly sophisticated Naval vessels such as landing platform decks, conventional submarines and state-of-the-art special vessels for the Indian Navy, a massive programme is being prepared by the Department of Defence Production in consultation with Indian Navy and DRDO.

Mazagon Dock Limited (MDL) is a leading defence shipyard involved in the construction of frontline warships and submarines for the Indian Navy and Coast Guard. The yard is presently constructing state-of-the-art stealth frigates, missile destroyers and Scorpene submarines, and is striding forward in attaining self-reliance goals in the construction of warships and submarines. MDL’s production efforts resulted in the launch of a missile destroyer at Chennai on April 1, 2010 and a multi-support vessel being built for export on June 5, 2010.

BEML Limited (BEML Bharat Earth Movers Limited), established in 1964, is a Mini-Ratna (Category-I) multi-location, multi product company engaged in the design, manufacturing, marketing and after sales service of a wide range of Defence products, Mining & Construction equipment, and Rail and Metro-rail products. The Company primarily operates in the three distinct business segments, i.e., Defence Business, Mining & Construction Business and Rail & Metro Business. The major activities of R&D of BEML include design and development of new products and aggregates for products such as Dozers, Dumpers, Excavators, Loaders and other Defence and Railway

Products, Technology absorption, Indigenization, Company standardization activities etc.

Bharat Dynamics Limited (BDL), a Mini-Ratna Category - I company, was incorporated in the year 1970. A pioneer in the manufacture of Anti-Tank Guided Missiles, BDL is now manufacturing ATGMs of later generations, surface-to-air weapon systems, strategic weapons, launchers, under water weapons, decoys and test equipment. Besides producing indigenously developed Prithvi Missile (Surface to Surface) and Akash (Long Range Surface to Air) Missiles, BDL is engaged in the production of Konkurs - M and Invar (3UBK-20) Anti Tank Guided Missiles (ATGMs) in collaboration with KBP, Tula (Russia) and Rosoboron export (Russia) respectively and Milan-2T with MBDA, France. In-house developed CMDS (Counter Measure Despising System) has already been accepted by the Indian Air Force for Jaguar and LCA. BDL is presently working on adoption of the system to a variety of Aircraft Platforms and also developing Radio Frequency controlled ATGM.

Mishra Dhatu Nigam Limited (MIDHANI), a Mini-Ratna Category-I company, was established in November 1973 to achieve self-reliance in the manufacture of a wide range of super alloys, titanium alloys, special purpose steels etc., primarily for defence and strategic sectors. It has made significant contributions during the last three decades in developing, productionising and supplying highperformance metals and alloys for programmes of national importance in defence, space and atomic energy. High-technology materials needed in light combat aircraft, and MIG aircraft engines, rocket-motor casing for space applications, missile programmes and special steels for nuclear reactors are provided by MIDHANI.

[edit] PRODUCTION & TURNOVER OF OFB & DPSUS

The production and turnover of Ordnance Factories and Defence PSUs have been increasing steadily, in response to the increasing requirements of armed forces as well as the nation’s security and strategic concerns. Details of turnover for the last three years are given below :

For achieving self-reliance in defence production, it is also essential to develop a wide production base in the private sector, apart from developing the public sector industries. Defence PSUs and Ordnance Factories have, as a policy, been outsourcing many of their requirements and have, over the years, developed a wide vendor base which includes a large number of medium and small scale enterprises, apart from large scale industries.

Production.PNG
India's military-industrial complex lies overwhelmingly in the public sector

[edit] PRIVATE SECTOR PARTICIPATION IN DEFENCE PRODUCTION

In May 2001, the Government of India had decided to allow private sector participation in defence industry which was till then reserved for the public sector. Under the guidelines issued by the Department of Industrial Policy and Promotion (DIPP), 100% investment by private sector is allowed in the sector and foreign direct investment upto 26% is allowed, subject to licensing.

Applications for licensing are considered by a Standing Committee in the Department of Defence Production and appropriate recommendations are given to the DIPP. As on 21.07.2011, DIPP has issued 169 Letters of Intent (LOI)/Industrial Licenses to private Indian companies for setting up defence industrial units. A number of joint ventures have also been formed between Indian and foreign companies.

In 2006, the Ministry of Defence had made a major change in the Defence Procurement Procedure, under which offsets have been provided for in respect of all contracts of Rs. 300 crores or more. Specified goods or services worth 30% of the value of such contracts, have to be procured by supplies from Indian industry. Since a large number of major procurements are on the anvil in connection with the modernization of the armed forces, the Indian defence industry will have several opportunities for participation in offset contracts.

[edit] DEFENCE PRODUCTION POLICY

The Government has recently brought out a Defence Production Policy with the following objectives :-

(i) To achieve substantive self reliance in the design, development and production of equipment/weapon systems/platforms required for defence in as early a time frame as possible;

(ii) To create conditions conducive for the private industry to take an active role in this endeavour; and

(iii) To enhance the potential of SMEs in indigenization and to broaden the defence R&D base of the country.

To achieve the above objectives, it has been decided that preference will be given to indigenous design, development and manufacture. For building a robust defence industrial base, it has been decided to encourage larger involvement of the Indian private sector industry in the design and development of defence equipment. In order to synergise and enhance the national capabilities introducing state-of-theart Defence equipment, formation of consortia, joint ventures and public private partnerships etc. will be encouraged. The Academia, Research and Development Institutions as well as Technical and Scientific Organizations will also be involved in the process.

[edit] DIRECTORATE GENERAL OF QUALITY ASSURANCE (DGQA)

Directorate General of Quality Assurance (DGQA) is an Inter-Service Organisation under the Department of Defence Production that is responsible for quality assurance of all defence equipment and stores for the Army and Navy (excluding Naval Armaments) as well as common use items for the Air Force. DGQA provides technical guidance to manufacturers and users and is also responsible for technical evaluation and final acceptance of specified products. The organization also acts as the Authority Holding Sealed Particulars (AHSP) and provides technical assistance to the Armed Forces in several areas such as formulation of GSQR and RFPs, technical evaluation of tenders, conduct of defect investigations, assessment of users' satisfaction etc.

The Organization consists of 10 technical directorates, each of which is responsible for a specified range of equipment. Each directorate has three functional tiers at the Headquarters, Controllerates and Quality Assurance Establishments in the field. In addition, DGQA also operates proof establishments for armament for carrying out proof firing of weapons and ammunition. The details of stores for which quality assurance services were provided by DGQA during the last three years are given below:

Production1.PNG

[edit] DIRECTORATE GENERAL OF AERONAUTICAL QUALITY ASSURANCE (DGAQA)

The Directorate General of Aeronautical Quality Assurance (DGAQA) is an organisation under the Department of Defence Production that is responsible for quality assurance and final acceptance of military aircraft, accessories and other aeronautical stores. The organization provides technical guidance to ensure quality assurance during all stages such as design, development, production, overhaul and repairs.

DGAQA also plays an important role in providing technical guidance to the Service Headquarters and manufacturers during various stages of procurement of aeeronautical stores. The organisation has put in place quality management systems to ensure that the stores procured meet the required specifications and performance parameters.

The Headquarters of the organisation is in New Delhi and there are 34 field establishments in different parts of the country. The total value of stores, for which quality assurance coverage was provided during 2009-2010, was Rs. 12546 Crore. A number of quality audits were also conducted on critical products and accessories for ensuring compliance with the specifications. The organization is also taking part in a number of investigations and joint studies with the Service Headquarters for improving the quality and reliability or aeronautical stores.

[edit] DIRECTORATE OF STANDARDISATION (DOS)

The primary objective of the Directorate of Standardisation is to establish commonality in equipment and components among the three Services so that the overall inventory of the Defence Services is reduced to the minimum. The objective is sought to be achieved through:

(a) Preparation of various Standardisation documents;

(b) Codification of Defence Inventory; and

(c) Entry Control.

The achievements vis-a-vis targets of these three major activities are given below:

(a) Standardisation: The target set for the year 2010-11 is 792 for standard documents, against which 710 have been prepared till November 30, 2010. 4,784 Standardisation documents have been formulated till November 30,2010.

(b) Codification: Codification target for the year 2010-11 is 60,096, against which 43,350 items have been codified till November 30, 2010 thereby making the total number of items codified till date to be 4, 49,179.

(c) Updation: Updation target for the year 2010-11 is 25,215 against which 7914 items have been updated till November 30,2010.

Provision of Foreign Standards: The mandate of this Directorate is to be the central repository for all National and International Standards. This Directorae has received a number of requets for foreign standards from various Departments/organisations under the Ministry of Defence.

It has been decided to procure the highest demanded foreign standards like ASTM, ISO and BS from the concerned Standards Developing Organisations (SDOs). These standards will be dispensed to Defence users free of cost.

[edit] DIRECTORATE OF PLANNING & COORDINATION

The Directorate of Planning & Coordination was set up in 1964 with the primary objective of preparing overall plans for the production of defence equipment in the country. The Directorate functions as an attached office of the Department of Defence Production.

The Directorate also deals with major production programmes for armoured vehicles, arms, ammunition, shipbuilding and communication, as well as international cooperation and offsets.

=DEFENCE EXHIBITION ORGANISATION (DEO=)

The main function of DEO is to organise and co-ordinate Defence exhibitions in India and abroad, primarily with a view to promote the export potential of defence oriented products and services, developed and manufactured by the Indian Defence Industry.

DEO maintains a permanent Defence Exhibition at the Defence Pavilion, Pragati Maidan, New Delhi. Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB), Defence Research and Development Organisation (DRDO), Directorate General of Quality Assurance (DGQA) and Directorate General of Aeronautical Quality Assurance (DGAQA) have displayed their products, innovations and services in this Exhibition.

India International Trade Fair (IITF): The Defence Pavilion also participates in the India International Trade Fair (IITF) held every year at Pragati Maidan, New Delhi during November 14-27. The Defence Pavilion has been awarded 8 Gold, 4 Silver, 3 Bronze and one Special Appreciation during the last 26 years. International Exhibitions in India: To provide a platform for the Indian Defence industry to showcase its capabilities, DEO organises two biennial international exhibitions in India, namely, the Aero India and the Defexpo India. While Aero India is dedicated to aerospace and aviation industry, the focus of Defexpo India is on land and naval systems.

Aero India: Aero India, first begun in 1996, has already carved a niche for itself as a premier aerospace and aviation exhibition in the international arena.

The Eighth edition of Aero India was organised from February 9 to 13, 2011 at the Air Force Station, Yelahanka, Bengaluru and has shown a growth of 40% in net area used by exhibitors over its previous edition with a participation of record number of 660 companies including 360 foreign companies.

Defexpo India: Conceived as a complementary exposition to Aero India, the Defexpo India was launched in 1999. The sixth edition of Defexpo India was held from February 15-18, 2010 at Pragati Maidan, New Delhi. 31 countries with more than 300 foreign companies and 350 domestic companies had participated. International Exhibitions Abroad: With a view to provide an impetus to export potential of Indian Defence Industry, DEO organizes "India Pavilion" for major defence products manufactured by them in the international exhibitions abroad. During the year, India participated in the Berlin Air Show-2010 to promote Aero India-2011. India participated in the Africa Aerospace & Defence exhibition (AAD- 2010) which was held from September 21-25, 2010 at Cape Town, South Africa. Participation in AAD-2010 overall was a great success.

National Institute for Research and Development in Defence Shipbuilding (NIRDESH)

Modern Naval platforms are complex and technology intensive and hence it is imperative that the country has the technological base and skill sets within, to design and develop them.

The Government has, therefore, set up the National Institute for Research and Development in Defence Shipbuilding (NIRDESH) to take the country towards selfreliance in this crucial area of defence technology. NIRDESH has been established as a Society under the Societies Registration Act and will be a part of the Department of Defence Production. NIRDESH will be funded by the Ministry of Defence and all the Defence Shipyards in the country.

Raksha Mantri (Defence Minister) laid the foundation stone on January 4, 2011 for NIRDESH at Chaliyam, near Kozhikode (Calicut), Kerala.

Raksha Mantri (Defence Minister) will head the Board of Governors as the President, with representations from the Ministry of Defence, Indian Navy, Coast Guard and Chairmen of Defence Shipyards as members.

[edit] RESETTLEMENT OF EX-SERVICEMEN

The Department of Ex-Servicemen Welfare (ESW) formulates various policies and programmes for the welfare and resettlement of Ex-Servicemen (ESM) in the country. The Department has two Divisions, viz., the Resettlement and the Pension, and it has 3 attached offices, namely, Secretariat of Kendriya Sainik Board (KSB), Directorate General (Resettlement) (DGR) and Central Organisation, Ex-servicemen Contributory Health Scheme (ECHS).

The KSB is responsible for the welfare of Ex-servicemen and their dependents and also for the administration of welfare funds; the office of Directorate General of Resettlement implements various policies/ schemes/ programmes like pre and post retirement training, re-employment, self employment etc. ECHS takes care of the health and medical needs of Ex-Servicemen and their dependents.

The main thrust of the Department of Ex-Servicemen Welfare is on resettlement/rehabilitation of Ex-Servicemen and their dependents. This is sought to be achieved through:

(a) Equipping Ex-Servicemen for suitable employment by imparting necessary training.

(b) Facilitating re-employment of the ESM in the Corporate/Government/Quasi Government Sectors and Public Sector Undertakings and also through Self Employment ventures.

Officers’ Training: DGR organizes short term courses of one to three months duration and a few courses up to six months duration for Ex-Servicemen Officers. Junior Commissioned Officers (JCOs)/ Other Ranks (ORs) Equivalent Training: Resettlement Training Programmes for Junior Commissioned Officer Ranks are conducted in diversified fields for varying duration in government, semigovernment and private institutes spread all over the country.

Ex-Servicemen (ESM) Training: The scheme for Ex-Servicemen training is meant for those Ex-Servicemen who could not avail the facility of resettlement training while in service. It is also extended to the widow/ one dependent of an Ex- Servicemen.

[edit] RE-EMPLOYMENT OF EX-SERVICEMEN

The Central and State Governments provide a number of concessions to exservicemen for their re-employment in Central/ State Government Departments. These include reservation of posts/ relaxation in age and educational qualifications, exemption from payment of application/ examination fees and priority in employment to the disabled Ex-Servicemen and dependants of deceased service personnel on compassionate grounds.

Reservation in Government Jobs: The Central Government has provided for the following reservation for ESM:

(a) 10% in Group ‘C’ posts,

(b) 14.5% in Group ‘C’ and 24.5% in Group ‘D’ posts in Public Sector Undertakings and Nationalized Banks.

(c) 10% posts of Assistant Commandants in paramilitary forces.

(d) 100% in Defence Security Corps.

[edit] PLACEMENT

Persistent efforts of the Department for increasing awareness amongst the Corporate Sector on the availability of trained Ex-Servicemen have borne fruit and now major demands are coming from the Corporate Sector/PSUs. During the year 2010-11 (upto December 31, 2010), 52,271 ESM have gained employment.

[edit] SCHEMES FOR SELF-EMPLOYMENT

The Government has formulated several self-employment ventures for rehabilitation and resettlement of Ex-Servicemen and their families. The details of some schemes are given in the following paragraphs.

Allotment of Army Surplus Vehicles: Ex-Servicemen and widows of defence personnel, who died while in service, are eligible to apply for allotment of Army Surplus Class V-B vehicles.

Coal Transportation Scheme: This is a popular scheme in vogue for the last 30 years. At present, 89 Ex-Servicemen Coal Transporation Companies are in operation and through them, 267 Ex-Servicemen officers and approximately 3000 retired PBORs have benefited.

Coal Tipper Scheme: This is a welfare scheme for widows/disabled soldiers linked to the coal transportation Scheme.

Allotment of Oil Product Agency: Ministry of Petroleum and Natural Gas has reserved 8% of Oil Product Agencies, (i.e, LPG Distributorship, Petrol Pumps and Superior Kerosene Oil Distributorship etc.) for the defence category applicants who comprise of war/peace-time widows and disabled soldiers.

Mother Dairy Milk Booths and Fruit & Vegetable (Safal) shops: This is a time tested remunerative self-employment scheme for Ex-Servicemen PBORs. DGR sponsors eligible Ex-servicemen for this purpose to Mother Dairy. The scheme has now been extended to other cities of NCR, viz., Gurgaon, NOIDA, Faridabad and Ghaziabad. COCO retail outlets of IOC and BPCL: Employment is being provided by these two States-owned petroleum companies to Ex-Servicemen officers for managing their retail outlets under COCO scheme.

Management of CNG Station by ESM (Officers) in NCR: This scheme was operative only in the National Capital Territory of Delhi earlier which has now been extended to cover entire NCR including NOIDA, Faridabad and Gurgaon.

[edit] WELFARE

Raksha Mantri (Defence Minister) Discretionary Fund (RMDF): A portion of the earnings of Armed Forces Flag Day Fund is set apart as RMDF, which is used to provide financial assistance to needy Ex-Servicemen, widows and their wards for various purposes. Prime Minister's Scholarship Scheme: The aim of the scholarship is to encourage the wards of Ex-Servicemen / Widows to go for higher technical/professional education. Wards of Coast Guard personnel are also eligible. The scholarship is provided for the entire duration of the course Rs Rs. 1250 per month for boys and Rs 1500 for girls, paid annually.

[edit] See also

Defence production, India: 1

Defence production, India: 2 (ministry data)

Defence procurement: India

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