Context

• Recently, the Ministry of Defence has launched the Defence Testing Infrastructure Scheme (DTIS).

About Defence Testing Infrastructure Scheme (DTIS)

• It has been launched for creating state-of-the-art testing infrastructure in partnership with the private industry.
• It would run for the duration of five years and envisages setting up of 6-8 Greenfield Defence Testing Infrastructure facilities that are required for defence and aerospace related production.
• The projects under the scheme will be provided with up to 75 per cent Government funding in the form of ‘Grant-in-Aid’. The remaining 25 per cent of the project cost will have to be borne by the Special Purpose Vehicle (SPV) constituents of which will be the Indian private entities and state governments.

Objectives of Defence Testing Infrastructure Scheme (DTIS)

• Its objective is to promote indigenous defence production, with special focus on participation of MSMEs and Start Ups by bridging gaps in defence testing infrastructure in the country.
• The setting up of Defence Testing Infrastructure will provide easy access and thus meet the testing needs of the domestic defence industry.
• It would provide financial assistance to private sector for setting up Testing and Certification facilities for manufacturers of defence equipment/systems.

Eligible entities under Defence Testing Infrastructure Scheme (DTIS)

• Each DTI will be setup through a Special Purpose Vehicle (SPV), hereinafter referred to as the Implementation Agency, which may be promoted/constituted by private entities (Industry, Industry association, R&D/Academic institution) and State Government agencies.
• The Implementation Agency under the Scheme shall be a Section 8 company registered under the Companies Act, 2013.
• Only private entities registered in India and State Government agencies will qualify for forming the Implementation Agency.
• The Central Government assistance for setting up DTIs will be in the form of Grant-in-Aid and will be limited to sum total of Rs 400 Cr. Assistance for individual DTI under the Scheme shall not exceed 75% of the project cost.
• All the constituents of SPV (Implementation Agency) shall have positive net worth.
• At least three constituents of the SPV should be in existence for more than three years and no relaxation will be provided in this regard.

• The SPV (Implementation Agency) shall be responsible for obtaining statutory clearances required for testing of weapons and ammunition.

Source: PIB

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