Allocation of Funds for Defence R&D

Allocation of Funds for Defence R&D

The expenditure on Research & Development by each of the nine Defence Public Sector Undertakings in 2013-14 is as under:

The norms for R&D, as per the guidelines of Department of Public Enterprises, are a minimum expenditure of 1% of Profit After Tax (PAT) for Maharatna & Navratna categories of Central Public Sector Enterprises (CPSEs). In respect of other CPSEs, it is 0.5% of PAT. All profit making Defence PSUs are complying with DPE norms for R&D expenditure.

The data about R&D expenditure by foreign countries is not maintained.

The Government provides assistance to Indian Industry/DPSUs/OFB/consortia in Research and Development of defence equipment. Under the ‘Make’ Category of Defence Procurement Procedure, there is a provision for funding 80% of the expenditure on Research and Development of prototype by the Government. Additionally, a Technology Development Fund (TDF) was announced in Union Budget 2014-15 to provide necessary resources to public and private sector companies, including SMEs as well as academic and scientific institutions to support Research and Development of defence systems that enhance cutting edge technology capability in the country.

So far as DPSUs are concerned, in the MOU’s signed between Government and DPSUs, a certain percentage of turnover has been fixed towards expenditure on R&D.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shrimati Sasikala Pushpa in Rajya Sabha today.

PIB