Since 2016-17, Government has signed Agreements with Russia for (i) production of AK-203 rifles as a Joint Venture, (ii) manufacturing of spares, components,etc required for Russian/Soviet origin platforms and defence equipment, and (iii) for manufacture of frigates 1135.6.
Some of the major contracts related to procurement/supply of defence equipment signed with foreign countries since 2013-14 include, Joint Venture for manufacturing of AK-203 rifles, agreement for manufacturing of spares, components, etc required for Russian/Soviet origin platforms and defence equipment, manufacture of Ka-226T helicopters, supply of S-400 long range surface to air missile system, Rafale fighter aircraft, M777 Ultra Light Howitzer, C-17 aircraft, etc.
Agreement for supply/manufacture of AK-203 rifle is with the Ordnance Factory Board, Agreement for Ka-226T helicopter is with Hindustan Aeronautics Limited (HAL), Agreement for 1135.6 frigates is with Goa Shipyard Limited (GSL). Each agreement provides for indigenization framework to be achieved.
Private industry benefits from indigenization/outsourcing efforts wherein such requirement is envisaged as part of the deal. Besides, private industry also benefits from the defence offset which arises from such agreements. Further, the Agreement with Russia on spares, components, etc required for Russian/Soviet origin platforms and defence equipment also allows Joint Ventures to be formed between Indian private industry and Russian OEMs (Original Equipment Manufacturers) to manufacture spares/components of Russian/Soviet origin platforms and defence equipment.
This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Shri Sisir Kumar Adhikariin Lok Sabha today.
