Rajnath Okays Rs 400 Cr Scheme to Boost Defence Manufacturing

The five-year scheme envisages to set up six to eight new test facilities in partnership with private industry.

Image used for representational purposes.

(Photo: Shruti Mathur / The Quint)

Union Defence Minister Rajnath Singh approved a Rs 400 crore defence testing infrastructure scheme on Friday, 15 May.

The defence ministry has stated that to give a boost to domestic defence and aerospace manufacturing, Singh has approved the launch of Defence Testing Infrastructure Scheme (DTIS) with an outlay of Rs 400 crore for creating state of the art testing infrastructure for this sector.

The scheme would run for a duration of five years and envisages to set up six to eight new test facilities in partnership with private industry.

“This will facilitate indigenous defence production, consequently reduce imports of military equipment and help make the country self-reliant,” the ministry said in a statement.

The projects under the scheme will be provided with up to 75 percent government funding in the form of ‘Grant-in-Aid’.

The remaining 25 percent of the project cost will have to be borne by the Special Purpose Vehicle (SPV) whose constituents will be Indian private entities and state governments.

The SPVs under the scheme will be registered under Companies Act 2013 and shall also operate and maintain all assets under the scheme, in a self-sustainable manner by collecting user charges.

“The equipment/systems tested will be certified as per appropriate accreditation,” the ministry said.

While majority of test facilities are expected to come up in the two Defence Industrial Corridors (DICs), the scheme is not limited to setting up Test Facilities in the DICs only.