The Defence Ministry has recently made headlines with its announcement to issue Requests For Proposal (RFPs) for establishing eight defence testing facilities across the country. The private sector will play a pivotal role as these RFPs are set to be issued under the Defence Testing Infrastructure Scheme (DTIS). An important business document, an RFP outlines a project and invites bids for its completion.
Background
In its bid to boost domestic manufacturing in Defence and Aerospace sectors and reduce import dependence, India has initiated several key programmes under the “Make in India” initiative. This includes the establishment of Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu. Additional initiatives such as the Revised Make-II procedures, Innovations for Defence Excellence (iDEX), and Defence Investors Cell have also been put in place. The ultimate goal of these initiatives is to foster an innovative ecosystem that encourages Indian industry to invest in Aerospace and Defence sectors. Furthermore, the Defence Investors Cell was created to provide necessary information and address queries related to potential investment opportunities, procedures, and regulatory requirements within the sector.
About DTIS
Launched on 8th May 2020, the Defence Testing Infrastructure Scheme (DTIS) is a five-year initiative. It aims at setting up 6-8 Greenfield Defence Testing Infrastructure facilities necessary for defence and aerospace-related production. Apart from this, the scheme also looks forward to partnering with the private industry to establish testing facilities.
Objectives of DTIS
The scheme’s primary objective is to encourage indigenous defence production, with a special emphasis on the participation of Micro, Small and Medium Enterprises (MSMEs) and Start-ups. This approach is aimed at addressing the gaps in the country’s defence testing infrastructure. Other objectives include providing easy access to meet the domestic defence industry’s testing needs, facilitating indigenous defence production to reduce military equipment imports and striving to make the country self-reliant.
Finance and Cooperation
The DTIS has allocated Rs 400 crore for the development of top-notch testing infrastructure over a five-year duration. Up to 75% of government funding, in the form of ‘Grant-in-Aid’, will be provided to the projects under this scheme. The remaining 25% of the project cost would need to be funded by the Special Purpose Vehicle (SPV), comprising Indian private entities and State Governments. To qualify as the implementation agency for the scheme, private entities must be registered in India and State Government agencies. All SPVs under the scheme will need to register under the Companies Act 2013.
Last Modified: February 13, 2024