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Business News/ Politics / Policy/  Defence orders worth `2.8 trillion to be placed by year end: Manohar Parrikar
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Defence orders worth `2.8 trillion to be placed by year end: Manohar Parrikar

Parrikar says the ministry is insisting on at least 40% indigenous content in defence products and the new DPP is structured to make that possible

Speaking on the deal for Rafale fighter planes, the minister said the Indian government is serious about concluding the deal shortly, but did not reveal details. Photo: Hindustan TimesPremium
Speaking on the deal for Rafale fighter planes, the minister said the Indian government is serious about concluding the deal shortly, but did not reveal details.
Photo: Hindustan Times

Mumbai: India will finalize defence orders worth 2.8 trillion by 2016 even as the ministry of defence is pushing for at least 40% indigenous content in the defence products.

Speaking to reporters at the Defexpo in Goa, defence minister Manohar Parrikar said the ministry has already finalized defence procurement orders worth 1,57,000 crore and orders worth 1,38,000 crore will be finalized shortly. “We are already on the verge of a major Make In India programme for defence. The new Defence Procurement Procedure (DPP) 2016 ensures products are made in India. It also ensures foreign companies that have technology can start to make in India," Parrikar said.

The defence minister said the ministry is insisting on at least 40% indigenous content in defence products and the new DPP is structured to make that possible.

Local defence production is at the heart of the Make In India initiative that Prime Minister Narendra Modi launched in 2015. The minister said the Indian Air Force (IAF) is set to form one Tejas combat plane squadron by end of this year or early next year. Tejas is the first indigenously developed light combat aircraft.

A letter of intent for procuring 120 Tejas planes was issued by the IAF in 2015. The first aircraft was inducted in 2015 and another three to four would be inducted this year. Parrikar also said the government has plans to increase Tejas production capacity to 16 planes a year from eight.

Speaking on the deal for Rafale fighter planes, the minister said the Indian government is serious about concluding the deal shortly, but did not reveal details.

India had struck a government-to-government deal to buy 36 Rafale fighter jets from Dassault Aviation SA of France in April 2015. Both governments are still negotiating the price for the 36 fighter jets.

Parrikar termed the ongoing Defexpo in Goa as a success. The Union minister said that 1,055 companies were participating in Defexpo Goa in 2016 as against 624 in 2014; 47 countries will be taking part in the exhibition as against the 30 countries which participated in the last edition of Defexpo that happened two years ago. The exhibition is showcasing India’s capabilities in land, naval and security systems as well as its emergence as an attractive destination for defence investments.

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Published: 28 Mar 2016, 09:20 PM IST
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