India has potential for 'nose-to-tail' aircraft production: defence minister
21 February 2019
India has established itself as a hub for manufacture and export of quality aerospace components, and now has the competence for “nose-to-tail production,” defence minister Nirmala Sitaraman has said.
Speaking after inaugurating the 12th edition of the biennial Aero India 2019, Sitharaman said the Make in India initiative has provided a strong impetus for more investments in the country’s defence sector.
She said the defence ministry has signed 150 contracts worth about Rs1,27,500 crore with Indian vendors over the past four years for procurement of defence equipment.
During the period, the government accorded acceptance of necessity to 164 proposals worth about Rs2,79,950 crore under various categories of capital procurement as per the Defence Procurement Procedure; this means Request for Proposal (RFP) is issued only to Indian vendors.
The value of production of the Ordnance Factory Board and defence PSUs has grown from Rs43,746 crore in FY14 to Rs58,163 crore in FY18, she said. Of this, 40 per cent of the production was outsourced to the private sector.
According to Sitharaman, the government has also facilitated the manufacture of seven types of ammunition by the private sector, backed by long-term contracts.