Context:

• The first batch of Multi-Mode Hand Grenades (MMHG), manufactured by Economic Explosives Limited (EEL) following Transfer of Technology from Terminal Ballistics Research Laboratory of Defence Research & Development Organisation (DRDO), was handed over to the Indian Army.

• MMHG as a shining example of the increasing collaboration between the public & private sectors and a big step towards self-reliance in defence manufacturing.

Measures undertaken by the Government to transform the defence sector into a self-reliant industry:

• Setting up of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu
• formulation of draft Defence Production and Export Promotion Policy (DPEPP) 2020
• earmarking around 64 per cent of its modernisation funds under capital acquisition budget for 2021-22 for procurement from domestic companies
• notifying two Positive Indigenisation Lists of over 200 defence items to promote self-reliance & defence exports
• Corporatisation of Ordnance Factory Board (OFB)
• increasing FDI limit from 49 to 74 per cent under automatic route and beyond 74 per cent through government route and according top priority to 'Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)}' category for capital procurement.
• Technology Transfer to Industries by DRDO.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1748523

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