Defence Minister Rajnath Singh on Friday approved a Rs 400 crore-scheme to develop infrastructure to help domestic military firms carry out testing of indigenously developed military hardware.
Under the scheme the projects will be provided with up to 75% government funding in the form of ‘Grant-in-Aid’ & remaining 25% will have to be borne by the Special Purpose Vehicle(SPV) whose constituents will be Indian private entities and State Governments.
“Defence Testing Infrastructure is often capital intensive requiring continuous upgradation, and it is not economically viable for individual defence industrial units to set up in-house testing facilities. The Scheme aims at setting up of Greenfield Defence Testing Infrastructure… as a common facility under private sector with government assistance, mainly in DICs (Defence Industrial Corridors),” state the DTIS guidelines.
The draft Defence Production Policy-2018 visualises India as one of the top five countries in the aerospace and defence sectors in the coming years, with defence goods and services accounting for a turnover of Rs 1.7 lakh crore by 2025. It also seeks to drastically reduce India’s dependence on imported military hardware over the next five years.