India Inc has been given permission by the Ministry of Defence to construct a light tank and other defence equipment.

  ~Preet.


Defence Budget 2022: Gearing up India's domestic military-industrial  complex - The Financial Express


Under the Defence Acquisition Procedure, the Ministry of Defence authorised projects involving the design and development of military hardware such as light tanks, airborne stand-off jammers, communication devices, and simulators (DAP). The defence ministry has approved nine such projects, four under the DAP 2020's 'Make-I' category and five under the 'Make-2' category. In the Union Budget 2022, India set aside Rs 84,598 crore (68 percent of the military's capital acquisition budget) for purchasing locally produced weapons and systems, as well as allocating 25% of the defence R&D budget to private industry, startups, and academia in order to encourage them to pursue design and development of military platforms.

The Make in India project, which aims to enhance indigenous capabilities by involving both the public and commercial sectors, is built around the 'Make' category of capital acquisition. Government-funded initiatives are referred to as 'Make-I,' while industry-funded programmes are referred to as 'Make-II.' Make-I is working on big-ticket platforms like light tanks and communication equipment that comply with Indian security regulations. The Make-II category includes military hardware prototype development or upgrading for import replacement for which no government money is provided. Simulators for Apache attacks helicopters and Chinook multi-mission choppers, wearable robotic equipment for aircraft maintenance, autonomous combat vehicle, and integrated surveillance and targeting system for mechanised forces are among the five projects approved under the industry-funded Make-II procedure.

Another sub-category under 'Make' is 'Make-III,' which encompasses military gear that isn't conceived or developed in-house but may be built in the nation to reduce imports, with Indian enterprises working with foreign partners to do so. 

It allows for the publication of a list of weapons or platforms that will be prohibited from entering the country. It focuses on FDI in defence production and indigenization of manufacturing costs. It also introduces numerous new concepts, including the need for artificial intelligence in platforms and systems, the use of indigenous software in defence equipment, and 'innovation' by start-ups and MSMEs (Micro, Small and Medium Enterprises) as a new category of defence purchase. It comprises the procurement categories Buy (Indian – Indigenously Designed, Developed, and Manufactured), Buy (Indian), Buy and Make (Indian), Buy (Global – Manufacture in India), and Buy (Global – Manufacture in India) (Global). It raises the Indigenous Content (IC) requirement for all projects from 40% to 50% before, depending on the category, to 50% to 60% now. Only under Buy (Global) procurement may overseas vendors receive 30 percent IC from Indian enterprises.

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