Indian Economy
Defence Testing Infrastructure Scheme
- 16 May 2020
- 3 min read
Why in News
Recently, the government has approved the launch of ‘Defence Testing Infrastructure Scheme (DTIS)’ in order to give a boost to domestic defence and aerospace manufacturing.
Background
- The Government has accorded high priority to development of the manufacturing base of Defence and Aerospace sectors in the country under “Make in India” initiative to reduce dependence on imports.
- In the above context, the government has already announced establishment of Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu.
- But, still one of the main impediments for domestic defence production is lack of easily accessible state-of-the-art testing infrastructure.
- Defence Testing Infrastructure is capital intensive requiring continuous upgradation and it is not economically viable for individual defence industrial units to set up in-house testing facilities.
Key Points
- Objectives:
- The Scheme aims to promote indigenous defence production, with special focus on participation of MSMEs and Start Ups by bridging gaps in defence testing infrastructure in the country.
- It will also help to provide easy access and to meet the testing needs of the domestic defence industry.
- It will facilitate indigenous defence production, consequently reduce imports of military equipment and help make the country self-reliant.
- Finance and Cooperation:
- The Scheme has an outlay of Rs 400 crore for creating state of the art testing infrastructure over the duration of five years.
- It envisages to set up test facilities in partnership with private industry.
- The projects under the Scheme will be provided with up to 75% government funding in the form of ‘Grant-in-Aid’.
- The remaining 25% of the project cost will have to be borne by the Special Purpose Vehicle (SPV) whose constituents will be Indian private entities and State Governments.
- Only private entities registered in India and State Government agencies will qualify for forming the implementation agency for the Scheme.
- The SPVs under the Scheme will be registered under Companies Act 2013.
- Location of DTISs:
- The Scheme aims at setting up Greenfield Defence Testing Infrastructure mainly in DICs but is not limited to setting up Test Facilities in the DICs only.
