RELEVANT EXTRACTS FROM INDIGENISATION POLICY OF IAF INTRODUCTION

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RELEVANT EXTRACTS FROM INDIGENISATION POLICY OF IAF INTRODUCTION 1. Indigenisation became the thrust area of Indian Air Force when the erstwhile USSR disintegrated into smaller independent constituents. Initially the efforts were concentrated on simpler but critically required items. Over a period, the domain was expanded to medium level complexity items and even some limited high technology items. In the last two decades, the indigenisation process at Base Repair Depots (BRDs) was driven towards meeting their own requirements. Even for HAL supported fleets indigenisation has been pursued by the IAF to avoid critical shortages. 2. Indigenisation in IAF is primarily a BRD oriented activity. Considerable effort has been put in by the depots for indigenisation of those low technology common spares which have been causing production hold ups at our BRDs. During the last few years, the thrust has shifted towards more complex spares and at the same time, many centralised fleets (OEM/HAL supported fleets) are still having hold ups for low technology spares. This has happened because of the supply chain bottlenecks from OEMs and by HAL. It is therefore prudent that indigenisation as a whole be given the necessary thrust by Air HQ to synergise the efforts for all the fleets in IAF whether HAL, OEM or BRD supported. BROAD PROCESS OF INDIGENISATION 3. Chapter 15 of DPM 2009 deals with Design, Development and Fabrication contracts. The detailed guidelines for undertaking indigenisation in IAF are also laid down in Manual of Indigenisation 2012 edition issued by HQ MC. The certification is to be undertaken as per Design Development and Production of Military Aircraft and Airborne Stores (DDPMAS) 2002. The complete procedure and the financial powers to CFAs are elaborated in Sch 10 of DFPDS 2015. Selection of Item for Indigenisation 4. Selection of an item for indigenisation is important to channelize the indigenisation efforts in the correct direction. There have been cases where items have been painstakingly indigenised after many attempts and flight trials, with no supply order being placed on the vendor due to adequate stock in store or dues in from OEM. This has resulted in loss of credibility of

2 the very process of indigenisation. The general guidelines for selection of item/services for indigenisation are as follows:- (a) Where OEM does not support the programme. (b) Fast consumption items with low shelf life including ARS and mandatory items to be considered when it is time consuming to procure these from OEM and their non-availability is likely to result in AOG / PHU. (c) When a better or equivalent item is either indigenously available in the market or can be customised to meet service requirement. (d) When modern indigenous equipment is available that can, with minor modification, replace the existing equipment and improve reliability. (e) Items that can be easily fabricated / manufactured within the country. (f) Tools, Testers and Ground Equipment. (g) FOL, Tyres/tubes, batteries, and on the basis of maintenance philosophy for new inductions. (h) Explosives and safety equipment systems. (j) Bought Out Items (BOI) Ex Import. 5. Responsibility of Dte of Indigenisation. The Directorate of Indigenisation at Air HQ is to function as the apex body without becoming an activity centre per-se for routine indigenisation tasks. It is to be continuously updated by HQ Maintenance Command (MC) on the items indigenized, under development issues faced which require intervention by Air HQ particularly in respect of policy and financial regulations, areas in which offsets are required, etc. The following tasks are to be undertaken by the Dte towards indigenisation:- (a) To be associated with Plans branch during the process of new acquisitions to advise on areas in which indigenisation should be taken up through joint development and Make in India. (b) A Central database for all vendors is to be maintained at Dte of Indigenisation, along with the range of products indigenised.

3 (c) Suggest technologies/areas to Plans branch which need to be obtained under Offsets for the IAF. (d) Identification of agencies to establish equivalence of items between foreign origin and Indian make items. (e) Provide interface with Indian industry for indigenous development. (f) Provide support for development and registration of vendors. (g) Enter into MoU with Indian industry/academic institutions of repute for indigenous development. (l) To approach HQ MC to task suitable units for indigenisation of critical items/ items with universal applicability. 6. Responsibility of Weapon Cells. The summarised role of Wpn Cell at Air HQ for a centralised fleet is:- (a) Selection of item and establish the need for indigenisation. (b) To provide necessary details of items identified for indigenisation. (c) To forward a prioritised indigenisation plan to Dte of Indigenisation. (d) To monitor quality of indigenised spares by regular feedback from field units. Responsibility of HQ MC and BRDs/EDs/ 1 Central Indigenisation and Manufacturing Depot (CIMD) 7. HQ MC has a crucial role in execution of indigenisation efforts to logical conclusion. The engineering expertise available at BRDs and CIMD are to be garnered to maximize output towards self sufficiency for accomplishment of maintenance activities in the IAF. The envisaged role of HQ MC is as follows:- (a) Formulate processes and procedures on indigenisation in the form of Manual of Indigenisation and review the same to maintain

4 authenticity on introduction of policy changes in techno-commercial aspects. (b) Facilitate depots to progress indigenisation task through higher level coordination with DPSUs, PSUs, DRDO Labs and major Indian aviation industries. (c) Assign specific tasks to an appropriate BRD for indigenisation of items for centralized fleets. Specify and modify the role of CIMD for necessary impetus and accommodate changing scenario. (d) Participate and organize indigenisation seminars, conference and workshops to enhance expertise and assimilate technology. (e) (f) Expansion of vendor base. Indigenisation database management. 8. The entities of HQ MC are the tactical centres for execution of the indigenisation plan drawn by higher formations. The broad role of BRDs and CIMD shall be as follows:- (a) BRDs. BRDs are to prioritise, plan and undertake indigenous development of all range of items for fleet sustenance as applicable to their assigned role. (b) 1 CIMD. This depot will function as the growing Central Repository of knowledge base and production infrastructure. It should function as an advisory body to BRDs on engineering issues and work towards conversion of items in Not Indigenised Not Feasible (NINF) category of BRDs to Not Indigenised Feasible category. 9. The essentials for consideration by all agencies for confidence in indigenous product and source during development and subsequent procurement are as follows:- (a) Identification of potential and capable Indian industry partner. (b) Professional involvement for reasonable and acceptable development lead time. (c) Follow-up orders to keep the developed source active.

5 (d) Stage inspection during development and procurement for receipt of quality product. (e) Association with airworthiness certification agency. (f) Periodic revalidation of certification to confirm techno commercial aspects. Support from CEMILAC 10. Support from CEMILAC for indigenisation is an essential and regulatory requirement, in case an item is declared critical for decentralised and centralised fleets. Presently, the co-located RCMA is able to provide coverage to the BRDs on a particular weapon system. CONCLUSION 11. Indigenisation in IAF is distinctly different from the efforts of DRDO agencies. In IAF, it is mostly need based to meet our operational goals. Indigenisation to a large extent would eliminate AOGs/PHUs and achieve self-reliance for critical spares. In addition, indigenisation will help to improve the performance of the equipment by incorporating the latest technology. While BRDs will be the hubs for all indigenisation of IAF, all other agencies i.e., Air HQ, HQ MC and EDs should support the endeavour of BRDs and 1 CIMD in this process.