Note4Students

From UPSC perspective, the following things are important :

Prelims level: Make-II Project

Mains level: Make in India in defense

The Army has approved sanction orders for the development of niche technology by the Indian industry under the Make-II route of defence procurement.

What are Make-Category Projects?

The provision of ‘Make’ category of capital acquisition in Defence Procurement Procedure (DPP) is a vital pillar for realising the vision behind the ‘Make in India’ initiative.
It aims to foster indigenous capabilities through design & development of required defence equipment/product/systems or upgrades/ sub-systems/components /parts by both public and private sector in a faster time frame.

‘Make’ Procedure has following two sub-categories:

Make-I (Government Funded): Projects under ‘Make-I’ sub-category will involve Government funding of 90%, released in a phased manner and based on the progress of the scheme, as per terms agreed between MoD and the vendor.
Make-II (Industry Funded): Projects under ‘Make-II’ category will involve prototype development of equipment/ system/ platform or their upgrades or their sub-systems/ sub-assembly/assemblies/ components. They aim primarily for import substitution/innovative solutions, for which no Government funding will be provided for prototype development purposes.

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