Defence Testing Infrastructure Scheme

Introduction

The Defence Minister Rajnath Singh on May 15, 2020 approved the launch of Defence Testing Infrastructure Scheme (DTIS) with an outlay of four hundred crore rupees (INR 400 crore) for the creation of state of the art testing infrastructure for domestic defence and aerospace manufacturing sector. It aims at setting up of ‘Greenfield Defence Testing Infrastructure’ as a common facility under the private sector with Government assistance, mainly in ‘Defence Industrial Corridors’ (DIC).

Objectives of the Scheme

The scheme is launched in the country to achieve the following objectives:

(i) To encourage ethnic defence production with a special focus on the involvement of micro, small and medium enterprises (MSME) and budding entrepreneurs by concreting the differences in the India’s defence testing infrastructure.
(ii) To provide easy access and thus meet the testing needs of the domestic defence

Duration of DTIS

DTIS is scheduled to run for the duration of five (5) years and envisages setting up six (6) to eight (8) new test facilities in partnership with private industries. This will facilitate indigenous defence production, consequently reducing the import of military equipment and help make the country self-reliant.

Financing of DTIS

The projects under the scheme would be provided with up to seventy five per cent (75%) Government funding in the form of Grant-in-Aid and the remaining twenty five per cent (25%) of the cost would be borne by the special purpose vehicles (SPV), whose constituents would be Indian private entities and State Governments.

Eligible implementation agencies

(i) The seven (7) private bodies that are enrolled in India comprise of the qualified units for establishing the ‘Implementation Agency’.
(ii) The SPV shall be responsible for obtaining statutory clearances required for testing of weapons and ammunition.

The SPVs under DTIS would be registered under the Companies Act, 2013 and shall operate and maintain all assets under the scheme in a self-sustainable manner by collecting user charges. The Ministry of Defence, Government of India stated that the equipment and systems tested would be certified as per appropriate accreditation. Majority of the test facilities are expected to come up in two (2) DIC, namely Uttar Pradesh Defence Corridor and Tamil Nadu Defence Corridor.

Scope of the Scheme

DTIS targets to bring the private sector into the aspects of testing and endorsing as the manufacturers of the defence tools, equipment and systems. DTIS proposes defence testing for:

(i) Testing facilities for drones including the Unmanned Aerial Vehicles (UAV) with the Remotely Piloted Aircrafts (RPA);
(ii) Electromagnetic Interference (EMI), Electromagnetic Compatibility (EMC) testing for radars, UAVs/RPAs and electronic or telecom equipment;
(iii) Rubber testing for defence and aerospace sectors;
(iv) Radiated noise, shock testing and electronic warfare;
(v) Software testing andspecialised test driving tracks;
(vi) Ship motion testing andtest facilities for the aerospace industry;
(vii) Ballistic and blast testing facilities andenvironmental test facilities.

Ineligibility of implementing agencies

The implementation agency or any of its constituents shall be debarred on the following rules and regulations:

(i) When the implementing agencies are proved to be offensive under the Prevention of Corruption Act, 1988;
(ii) The Department of Defence Production directs and clarifies all the issues raised regularly so that DTIS is implemented in a proper manner and direction;
(iii) When the Implementing Agencies are proved to be offensive under the Indian Penal Code, 1860 or any other law for the time being in force in case an individual is responsible for any loss of life or property or initiating a threat to public health;
(iv) Proceedings against any its constituents are running under Insolvency and Bankruptcy Code, 2016.
(v) When the subordinate constituents of SPV (implementation agency) are blacklisted by the Government of India.

Benefits of DTIS

Over the decades, the Defence Research and Development Organisation, the forty one (41) ordnance factories and the eight (8) defence public sector undertakings have created sophisticated and costly testing facilities for firearms, ammunition, electronics and radar at government expense. DTIS will provide the private sector to avail the access to such facilities.The DTIS was approved in order to promote indigenous defence capability, specifically amongst MSME and start-ups. Under this scheme, the private sector will have access to facilities such as sophisticated and costly testing facilities for firearms, ammunition, electronics and radars at Government expense.

This update is by Shambhavi Singh, Advocate & Associate at Agarwal Jetley & Co., Advocates & Solicitors. Contact: Email: shambhavisingh@agarwaljetley.com or Mob: (+91) - 9650424966