Hindustan Aeronautics Limited (HAL), a Defence PSU under the Ministry of Defence responded to a Request for Information (RFI) received from Royal Malaysian Air Force (RMAF), Malaysia in February, 2019 for LCA class aircraft. Subsequently, Hindustan Aeronautics Limited responded in October, 2021 to Request for Proposal (RFP) issued against tender released by Royal Malaysian Air Force, Malaysia for 18 nos of Fighter Lead In Trainer – Light Combat Aircraft (FLIT – LCA) and HAL offered LCA Tejas twin seater variant. Other countries which have evinced interest in LCA aircraft are: Argentina, Australia, Egypt, USA, Indonesia, and Philippines.
The Government has taken several policy initiatives in the past few years and brought in reforms to encourage indigenous design, development and manufacture of defence equipment in the country, thereby expanding their production. These initiatives, inter-alia, include:
- According priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020.
- The announcement of 18 major defence platforms for industry led design & development in March, 2022.
- Notification of three ‘Positive Indigenisation Lists’ of total 310 items of Services and two ‘Positive Indigenisation Lists’ of total 2958 items of the Defence Public Sector Undertakings (DPSUs), for which there would be an embargo on the import beyond the timelines indicated against them.
- Simplification of Industrial licensing process with longer validity period.
- Liberalisation of Foreign Direct Investment (FDI) policy allowing 74% FDI under automatic route.
- Simplification of Make Procedure.
- Launch of Innovations for Defence Excellence (iDEX) scheme involving start-ups & Micro, Small and Medium Enterprises (MSMEs).
- Implementation of Public Procurement (Preference to Make in India) Order 2017.
- Launch of an indigenisation portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs.
- Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers.
- Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.
- Opening up of Defence Research & Development (R&D) for industry, start-ups and academia with 25 percent of defence R&D budget earmarked to promote development of defence technology in the country; and
- Progressive increase in allocation of Defence Budget of military modernisation for procurement from domestic sources, etc.
