India emerging as major defence manufacturer, production crosses Rs1 Lakh Crore

The value of defence production in financial year 2022-23 has crossed Rs 1 lakh crore for the first time ever, the Defence Ministry said Friday. “The value currently stands Rs 1,06,800 crore and it will go further up once the data is received from the remaining private defence industries. The current value of defence production in FY 2022-23 is a rise of more than 12% over FY 2021-22, when the figure was Rs 95,000 crores,” the Defence Ministry said. The value of indigenous defence production for Financial Years 2020-2021 and 2021-2022 are Rs 84,643 crore and Rs 94,846 crore respectively. To achieve ‘Aatmanirbharta’ and realise the goal of ‘Make in India’, Centre has established two Defence Industrial Corridors (DICs) in the country, one in Uttar Pradesh and other in Tamil Nadu. Six nodes viz. Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow have been identified for developing Uttar Pradesh Defence Industrial Corridor (UPDIC). Similarly, five nodes viz. Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli have been identified for developing Tamil Nadu Defence Industrial Corridor (TNDIC). Centre intends to develop defence manufacturing ecosystem having conducive conditions including supply chain for giving push to production and testing & certification to create economies of scale and facilitate development of internationally competitive enterprises in the country. The seven new DPSUs carved out of erstwhile Ordnance Factory Board have been incorporated as Government companies (wholly owned by the Government of India) under the Companies Act 2013 in October 2021. Government has taken steps to initially handhold and support these new defence companies in starting their business as corporate entities. In this regard, outstanding indents with erstwhile OFB were grandfathered and converted into deemed contracts valuing about Rs 70,776 crore for the next five years. These deemed contracts provide annual targets for delivery of products. Every year, 60% of amount pertaining to that year’s target would be paid by the Services to the new DPSUs as advance as per the terms and conditions stipulated in the deemed contract. The advances provide the working capital to the newly constituted DPSUs. With more functional and financial autonomy, these new DPSUs are focusing on widening their customer base, including exports to augment the volume of defence production. The DPSUs are pursuing export opportunity through interaction with Defence Attaches at various Indian Embassies and Missions abroad. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook_,_  Twitter and  Instagram_._