MINUTES OF MEETING OF IDEEA HELD ON 5TH MARCH, 2020 AT TAJ APARTMENTS, NEW DELHI

The First meeting of the Indigenous Defence Equipment Exporters Association(IDEEA) was held on Thursday the 5th March 2020 at Taj Apartments, RK Puram at New Delhi. The following were present:

  1. Dr RK Tyagi, Director, IDEEA
  2. Maj Gen P.M.Vats (Retd), Director, IDEEA,
  3. Sh. Ashok Atluri, CMD, Zen Technologies Ltd
  4. Sh. Kishore Dutt Atluri, President, Zen Technologies Ltd
  5. Maj Gen Anil Oberoi (Retd). President( Def), SMPP Pvt Ltd
  6. Sh. Mohan Nair, Head (International Business), L&T-Def.
  7. AVM Arvind Verma (Retd), Advisor (Aviation), Zen Tech. Ltd
  8. Sh. Harmit Chawla, VP (BD), Hughes Precision Mfg Pvt Ltd
  9. Sh. GC Mahapatra, GM (BD), Aerospace Engineers Pvt Ltd
  10. Sh. Umesh Kumar, Sr Mgr Mktg , Shiva Texyarn Ltd
  11. Sh. Vishal Mehta, MD, Potential Exhibitions & Media Marketing.
  12. By Spl Invitation:
    • a) Shri Nitin Gokhale, Founder & CEO, Bharat Shakti.in
    • b) Lt Gen JK Sharma(Retd)-Sr. Defence Advisor,UP Defence Corridor(Govt. Of UP)
  13. Sh. Sukhbir Singh, Secretary, IDEEA.
  1. Opening the discussion, Maj Gen. Vats(Retd), welcomed the members and special invitees present at the meeting. He set the agenda for the day by stating that the Govt of India has set a target to become one of top three defence exporters in the world and achieve a target of defence exports to the tune of Rs.35000 crores by 2024. In order to achieve this objective,  IDEEA was launched at the 4th edition of Defence Attaches’ Conclave held on 18th Oct, 2019 at Delhi to work relentlessly to promote India’s defence exports and to act as a facilitator and to provide an exposure  to Indiandefence equipment manufacturers  to international customers  with special focus on Micro Small and Medium Enterprises(MSMEs). Further, it has a mandate to provide advice on the issues and challenges with defence industry ecosystem. He thus welcomed an august presence in the meeting to work towards the above goals
  2. In order to achieve the objectives and set the tone, Director (IDEEA) stated that he met Dy Director General –EPC, Govt of India on 19th February, 2020 along with Secretary,IDEEA to discuss as to how IDEEA can contribute effectively in this field. Useful discussions were held. The minutes of the meeting were shared with the members(copy placed at Annexure-II). Further, an MOU was also entered with M/s SigmatekAdvanced Technologies Ltd, Israel on 25th February, 2020.  M/s Sigmatek is active in the Defense, Aviation, HLS and Cyber systems in the Israeli market and abroad. Both look forward to cooperate in promoting new activities, ventures and supporting and guiding private industries which chose to explore business opportunities between Israel and India and vice versa
  3. After a small briefing by Director, IDEEA, deliberations of the meeting began by Sh. Ashok Atluri, CMD, Zen Technologies Ltd, suggesting that IDEEA’s roadmap to promote exports should be dovetailed to Govt of India’s larger goal of achieving US$ 5Bn of exports
  4. Carrying forward the discussions, Shri Mohan Nair, L&T , opined that IDEEA as a Forum should bring forward to the notice of the  Govt  issues of concern and Govt should facilitate us. Maj Gen Vats endorsed and stated  that a meeting should be sought with the Hon’ble RM and also with Chief of Defence Staff as our Defence Attaches’ are regularly reporting to HQ, IDS. He further stated that DAs have a very pivotal role to play in defence exports. Therefore, they should be imparted pre-induction orientation. He spoke about the budget being made available to the DAs. The different countries have been into 3 categories depending upon the export potential.He further stated that as per scheme issued vide letter dated 20th May, 2019 in this regard, DAs  are authorised to use the funds for participating in fairs/exhibitions, publicity campaigns and for organizing seminars. Shri Mohan Nair suggested that the DAs should organise one to one meeting with potential buyers of Indian products after the fairs/exhibitions. One of members raised the issue that DAs should also give due importance to private sector and not only PSUs. Shri Kishore Dutt, President, Zen Technologies Ltd, suggested that a meeting should be organized with Secy (East) and Secy(West) at MEA,  so that they issue directions in order to accord  importance to defence exports and their role as Facilitator be given to the  the Indian Ambassadors/High Commissioner offices. At this point, a member suggested that pre-induction orientation should  also be imparted to Indian Ambassadors
  5. A member raised the issue of Line of Credit(LOC). He stated that there should be transparency in the whole process regarding the extending LOC and opportunity to both public and private sector to participate in the process of supplying the desired product. A periodical meeting should be called by the Govt wherein big and smaller industries should be invited to review progress. There is a need to draw out an yearly calendar of activities for DAs to act upon and not just issuing a calendar of activities at short notice with tight schedules. One of the members suggested regarding creation of a dedicated post of JS(Exports),  who will look after the interest of defence industry in both public and private sector, Director IDEEA stated that the suggestion can be forwarded  from  the IDEEA to MOD
  6. A point was also made that for exporting, identifying Associations/forums in the respective countries can also give fruitful results. A data base could be helpful. DAs can be approached for this
  7. Mr. Nitin Gokhale,special invitee, Bharat Shakti.in informed that they are planning to organize a seminar with the approval of Hon’ble RM, wherein the DAs already deployed are being invited for a mid-term review/assessment. IDEEA will be kept informed about the date of the event
  8. Emphasis was laid that EXIM bank is a major player in extending credit to the identified countries through Line of Credit. It will be worthwhile to include a representation from EXIM BANK in the IDEEA forum
  9. It also transpired in the meeting that like a dedicated place like Defence Pavilion managed by DEO at Pragati Maidan, on the similar lines, under one roof such facility should be created. In this connection, a request to identify a suitable location for such facility was made to Lt Gen JK Sharma(Retd)-Sr. Defence Advisor,UP Defence Corridor(Govt. Of UP). He promised to look into this request
  10. One member also wanted IDEEA as a forum to take up the difficulty being faced with the DGFT. A suggestion also was made that joint meeting with MEA,MOD, DGFT be held after getting Agenda points  from members to resolve the issues faced by them
  11. Maj Gen Vats also informed the members that Mr. Vishal Mehta who is looking after Exhibitions and media marketing has been invited to make a presentation to the members.  The meeting concluded with the presentation
  12. The Directors of IDEEA thanked all the members present for taking out their valuable time for attending the meeting and making very useful suggestions to make a way forward and giving a direction. Maj Gen Vats also thanked M/s Zen Technologies, who had offered  their office premises for the meeting and also welcomed the offer of Shri Mohan Nair of L&T to hold the next meeting at their Delhi office
  13. The Actionable points as a result of deliberations at the meeting are placed below

ACTIONABLE POINTS ARISING OUT OF MEETING

  1. IDEEA as a Forum should bring forward to the notice of the  Govt  issues of concern being faced in export of defence equipment. A meeting to be sought with the Hon’ble  Raksha Mantri after compiling points from members
  2. DAs have a very pivotal role to play in defence exports. They should be imparted pre-orientation training. To take up with Dy Director General-EPC,  regarding the  pre-orientation  training.  Further to take up that DAs should organise one to one meeting with potential buyers of Indian products after the fairs/exhibition and  DAs should also give due importance to private sector
  3. A meeting to be organised with Secy (East)  and Secy(West), MEA so that they issue directions to DAs and to the office of Indian Ambassadors to give due importance to defence exports and their role as facilitator
  4. To take it up with concerned so that a  procedure is in place to find out the status/tracking of LOC file
  5. To suggest calling for a periodical meeting by the MOD(DIP) wherein big and smaller industries should be invited to assess regarding the steps being taken to achieve export target and corrective actions thereof
  6. Yearly calendar of activities to be drawn for DAs to act upon and just not issuing a calendar of activities at short notice with tight schedules. Besides, DAs Seminar schedule for the next year be demanded. Schedules of upcoming  exhibitions will also to be shared
  7. To take up the suggestion of creation of a dedicated post of JS(Exports) who will look after the interest of both public and private sector
  8. With DAs, Point to be raised  that for exporting, identifying Associations/forums in the respective countries and prepare a  data base
  9. EXIM bank being a  major player in extending credit to the identified countries.  It will be worthwhile to invite a representation from EXIM BANK in the next IDEEA forum
  10. To take up the issue of creation of  a dedicated place like Defence Pavilion managed by DEO at Pragati Maidan, on the similar lines or allocation of space in the Pragati Maidan itself and creation of Centre of Excellence where Public and Private industries can showcase their capabilities under one roof
  11. IDEEA as a forum to take up the difficulty being faced by the defence industry with the concerned,  hence joint meeting with MEA,MOD, DGFT and EXIM BANK be held after  understanding/receiving agenda points  from members to resolve the issues faced by them

RECORD OF DISCUSSION HELD WITH DY DIRECTOR GENERAL-EPC ON 19TH FEB, 2020

  1. A meeting was held on 19th February,  2020 at Sena Bhawan with Shri Sanjeev Chadha, Dy Director General, Export Promotion Cell, DDP, which was attended  by  Maj Gen PM Vats(Retd), VSM , Director IDEEA along with Shri Sukhbir Singh, Secretary, IDDEA  with  an aim to discuss on many issues related to Defence exports with specific reference to DEF EXPO 2020 vis a vis role of IDEEA to play a useful role in achieving common goal of enhancing indigenous  defence exports
  2. In the opening remark,  Director IDEEA congratulated Dy DG, EPC for a very successful conduct of very recently held DEF EXPO at Lucknow from 5th February, 2020 to 9th February, which gave an opportunity to Indian Defence  industry in particular to showcase their strides in defence manufacturing and signing of MOUs bringing in investment in the defence industry. DDG informed the MOUs are available on public domain
  3. Director IDEEA informed DDG that in a week’s time, IDEEA is signing an MOU with Sigmatek Advanced Technologies Ltd. M/s Sigmatek is active in the Defense, Aviation, HLS and Cybersystems in the Israeli market and abroad. Both look forward to co-operating in promoting new activities, ventures and supporting and guiding private industries which chose to explore business opportunities between Israel and India and vice versa.
  4. Director IDEEA enquired from DDG preferred rate applicable to Indian Companies while participating in foreign exhibitions. DDG told that it is advantageous to come under one umbrella i.e. INDIA PAVILION  wherein expenditures thereof are distributed along with discounts, if any. It is beneficial for MSMEs to participate as a group in India Pavilion
  5. Director IDEEA raised the point of Line of Credit. It was brought out that as per MEA, LOC can be extended against firm order. The policy on LOC is available on EXIM bank website
  6. Reg. Negative list of countries, it was brought out that no negative list is available on public domain. However, decision is taken on case to case basis
  7. ADB: It also came out in discussion that as Army Design Bureau was set up to work together with industry and find indigenous solutions for the Indian Army.   Every year a booklet is issued with problem statements. MSMEs can play a important role in developing indigenous solutions and also develop high tech defence products
  8. EXPORT BOOKLET: Director, IDEEA also raised the point of Export Booklet. It has detailed information on products/platforms of DPSUs, OFB  and Private Companies.  It was informed by DDG that both old and new booklet are available on”defenceexim.gov.in” .  However, new booklet is erroneously placed under OFFICE ORDERS with the  titled “BOOKLET ON INDIAN DEFENCE GOES GLOBAL”. Director IDEEA requested for placing the same at right place
  9. SCOMET list(SPECIAL CHEMICALS, ORGANISMS, MATERIALS, EQUIPMENT AND TECHNOLOGIES): DDG brought out that revision is done by Ministry of Industry. Revision of list of Dual use items is done by Ministry of Commerce. However DDP allows the legitimate export of the Munitions List  items mentioned in Category 6 of SCOMET List as Notified by DGFT. . It  is administered by Export Promotion Cell of DDP
  10. CONDUCT OF SEMINARS BY DEFENCE ATTACHES:
    DDG further stated that Seminars on Export promotion on Indian Defence products are being organized by Defence Attachés under the aegis of Indian Embassies. These seminars will provide an avenue for focused interaction for companies with important stakeholders of the country. Industry may take advantage of the opportunity by attending and benefitting from the B2B interactions. Respective DAs may be contacted for details. The Contact Details of Indian Defence Attaches in Missions abroad are available under OFFICE ORDERS of DDP Website   “defenceexim.gov.in”.

    • Seychelles- 21feb
    • Srilanka- 28feb
    • Kenya- 4 Mar
    • Tanzania- 6 Mar
    • South Africa- 1st week March
    • Myanmar-     17-18 Mar
    • Vietnam- 3rd week of March
  11. Director, IDEEA requested DDG to include IDEAA in the mailing list of EPC whenever any policy directive/guidelines are issued along with other Industry bodies like CII, ASSOCHAM, SIDM etc. In this connection a copy of our email dated 14TH February, 2020 addressed to him on this subject was given. He agreed for the same
  12. Director, IDEEA enquired during the discussion whether DPSUs can be member of IDEAA. DDG stated there should not be objection as it will be beneficial for them
  13. Director, IDEEA further requested DDG to provide a list of industries which are registered with DDP into manufacturing of indigenous defence equipment. DDG stated that IDEEA should play a significant role in enhancing defence exports