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Sunday, February 23, 2020

Towards higher farm productivity   Link


Green Revolution had a stellar impact on the productivity of staple grains, availability of food grains, lower food prices and poverty reduction. However, it left out large parts of the country that were unirrigated or grew low yielding crops, and it encouraged the use of inputs that was unsustainable, eg. "injudicious use of chemicals that damaged soil fertility" and high extraction of water that lowered water tables and caused salinity. Land degradation and such are discussed here.

Institutional factors such as land size and access to land, credit, effective markets, technology and infrastructure such as irrigation, influence the ability of smallholders to commercialize and diversify. Govts have worked on strengthening these factors to improve farm productivity. It is now also looking for climate change resilience and sustainability in terms of resource utilisation (eg irrigation that uses more water for higher production is not sustainable for a water-stressed India).

HIGHER CEREAL YIELDS, RABI and MAIZE

Higher cereal yields are reducing the water footprints (water use per unit production) of all cereals. Production not only meets the demands of a growing population (up 235% in the last 60 years) but allows enough land and water for other crops and land uses. For example, India achieved 26.4% increased total cereal production (btw 2005-14) without additional water (down 6.6%) or land (up 1.8%). However, inputs like irrigation (up 51.4 Mha to 58.2 Mha), fertilizer (up 20 Mt to 24 Mt) and pesticides (40 kt to 53 kt) fostered higher yields. 
Shift from Kharif to Rabi is one of the hidden causes for higher cereal crop yields, as both high yielding (up 64%) & traditional varieties (up 36%), show higher productivity during Rabi or dry-season (Ministry of Agriculture and Farmers Welfare, 2017). Rabi temps and less cloud cover favours photosynthesis, reduced water loss and better pest control.


Yields growth (helped by a shift to dry season & irrigation) has lowered water footprints, as both Irrigation water (blue) and Plant uptake (green) have fallen. 

Changing dietary preferences mean more land is required for horticulture, livestock, pulses, vegetable oils, etc, though cereals remain important as calorific foodgrains. In view of groundwater depletion (up 23% btw 2000 to 2010 in one study), a shift toward much higher maize production seems inevitable. Maize has the best combination of low water use, high & fast-growing yields and rising demand from industry and livestock sectors. (Edit: GM maize can yield up to 10t/ha, up from 3.05t/ha in 2019).

Millet and sorghum, nutrient-dense coarse cereals, are very popular (and desirable) choices for consumers but need very large yield increases for profitability. Millet production has stabilised at around 10.5-11mt, due to rising urban demand, good yield accretion (up from 1.03t to 1.26t/ha btw 2008-19) and govt's millet scheme (eg. distributed in PDS & school meals, as millets boost child growth by 50%).

Yield growth of Corn is at 2%, Maize has since cooled, Wheat is coming back strongly, and Rice is surefooted.



SHIFTS IN CROPS and REGIONS

Productivity and sustainability can be optimised whilst meeting demands for particular foods. Rice production is currently surplus. It makes sense to shift paddy from water-stressed North India to basmati (where possible) and to East India, where water is plentiful and productivity is expected to keep rising with better methods and procurement. The area vacated in the North can shift to more profitable horticultural crops and water loss can be minimized by covered horticulture. Wheat has stopped expanding since 2015, due to good yield growth (3.14t to 3.42t/ha btw 2014-19). It may expand again due to rising demand, higher irrigation and healthy yields. It is the preferred crop for farmers in Rabi, in North & Central India.
Maize is most productively grown in South at good yields favoured by rising irrigation and poultry demand. Half the area vacated by nutri-cereals, particularly sorghum, has gone to pulses, which is heavily promoted by govt. East India is favoured for oilseeds which can be double-cropped in rice fallows. Coastal regions are favoured for exports of high-quality horticulture & processed foods (eg banana exports from Andhra, processed fruits, dry milk powder). Micro-irrigation coupled with new high-yielding varieties of sugarcane in UP and South India can see production increases with reduced water use.

DECENTRALISED QUALITY SEED PRODUCTION

Potatoes are one of the most important horticultural crops. Yet, potato yield in Gujarat is 31m/ha and in Assam, it is just 10t/ha. This is because quality seeds, which make up to 40-50% of the total cost of production, are not cost-effectively transported to East and South India from producers in Punjab. Apical rooted cuttings is a low-cost, low capital-intensive method that is likely to decentralise potato seed production. APC facilities are being trialled in Bengaluru, in collaboration with the University of Horticultural Sciences (UHS). It can be easily set up in East India. 

New regional oilseeds seed hubs are being set up that will boost yields by providing farmers with high yielding, drought- and pest-resistant varieties. It targets 14m ha of total rice fallow, particularly in the East and NE states, eg. Jharkhand, Odisha, WB, East UP, Assam. Value chains will also come up for processing and marketing. ICAR is encouraging farmers to bring 1.4m ha under mustard in Jharkhand. Another target is Assam. "Private mustard seed companies are already active in West, North & Central India, so 20 seed hubs will be set up in East, exclusively for mustard, by the next financial year."

ICAR says while farmers in major mustard growing regions in MP, Haryana, UP and WB have shifted to wheat, oilseed area has risen in eastern parts by a similar extent. MSP hike also played a crucial role in boosting acreage of the oilseed in non-mustard growing areas. "Last year, average mustard yield was 1.49t/ha and it is expected to remain the same in 2019-20. But in some areas in eastern Uttar Pradesh, it's rising to a record 1.9t/ ha!!"

SOIL HEALTH CARD

Soil health card has been a resounding success so far. The predicted benefits of SHC are backed by two studies. The second study does not mention the uptake of SHC, but this only highlights the importance of proper uptake for the overall success of SHC.

1. The National Productivity Council study, with a sample of 1700 farmers, found a 10% cut in the use of chemical fertilizers and a 5-6% increase in farm productivity (higher incomes & time savings for farmers).

2. The NAIEM or Hyderabad study among growers of cotton, paddy and soybean, found those who followed recommendations of SHC, had lowered costs by 4-10%, and increased incomes by 30-40%.

Issues with blind use of fertilizers

India consumes 25.6 mt of fertilisers, with 17 mt of N, 6mt of P and 2.5mt of K. The ideal ratio of NPK (4:2:1) has been skewed towards nitrogen (6.7:2.4:1). Started during Green Revolution in the 1960s, farmers had been over spraying subsidised chemical fertilisers on crops, imperilling public health, degrading soils and upending crop yields. Urea, in particular, was used in doses several times above recommended levels. It accentuated deficiencies in other elements (P, K & micro-nutrients) and caused an imbalance of soil.

Health impact

The "chemical health epidemic", describes higher incidences of cancers and other diseases found in states with excessive per hectare use of chemicals. For example, fertilizer chemicals have made their way into Punjab’s food chain, groundwater and soil.

SHC, its implementation and way forward

At the farmers' level, SHC is meant to reduce input costs, increase crop yields, increase the use of hybrid seeds, establish new types of crop and increase farmers' incomes. On a broader scale, its aim is to "replenish severely degraded soils and promote balanced use of chemicals." 

While soil deficiencies in a region are well-know, the importance of SHC is that it gives customised recommendations for farmers. A former member of ICAR says testing can't be a "one-time affair" and routine testing is required for achieving sustained gains.

SHCs are renewed every two years and offer local farmers specific recommendations on fertiliser use. These are based on tests for main elements and micro-nutrients in the soil. Sampling, testing and reporting of local soil conditions are done through a nationwide network of laboratories, built up under SHC scheme by PM Modi's NDA govt in 2015. 250 million cards have been sent to farmers so far!! Nitrogen shortages were found in soils of Punjab, Haryana, UP, Rajasthan, Gujarat and Maharashtra. Phosphorous-depleted soil was found in Himachal, Haryana, UP, Rajasthan, Gujarat, parts of Bihar and Jharkhand.

Soil health initiative weaning farmers off fertiliser overuse

FARM MECHANISATION

Higher farm mechanisation and higher farm power availability are known to increase farm productivity. Power availability, for running production and post-harvest operations, will be increased from 2.02 kW per ha (2016-17) to 4.0 kW per ha by the end of 2030. India (at 40-45%) is increasing mechanisation further, towards levels seen in China (57 per cent), Brazil (75 per cent) and USA (95 per cent). 

Govt provides farmers assistance through the states for procuring agri-machines, agri-equipment and for setting up Custom Hiring Centre (see Farm Mechanisation - NABARD Link). The thrust of funding in the last 4 years, was on machinery like laser leveller, happy seeder technology, combine harvesters and small equipment like power weeders, while tractors see steady growth in sales at 7.5%pa.

Focus on farm mechanization to cope up with increasing food demand


FARMER PRODUCER ORGANISATIONS, LAND LEASING and KISAN CREDIT CARD link

Despite the many govt schemes, for 86% of farmers with small and marginal sized farms, credit remains difficult and farming support mechanisms are inadequate or non-existent. Yet, experts admit that small Indian farmers are highly efficient in farming and more so than larger farmers. It would seem that good support to these small farmers would increase farm productivity and go a long way to doubling farmers' incomes.

The marginal farmers are not well-organised or powerful in any economic sense. Their agri-produce is often undersold or wasted and is inadequate to earn a decent income. Farmer Producer Organisation (FPO) organises small and marginal farmers into larger units (of ~20) and aggregate these into thousands of farmers. FPO helps farmers in value-addition at the local level where the farmer and his family have a financial stake in it. 

FPOs can clearly do much more to support the farmers as they have economic, institutional and political clout. For example, FPO can get easier finance, eg for funding farm solar PVs under PM KUSUM. FPO can make informed choices on local infrastructure, eg. choice of water bodies for conservation (under Jal Shakti Abhiyan) and piped water (under Jal Jeevan Mission).

One important benefit for all concerned is that FPO must be market-orientated and will encourage farmers to produce only what can be sold, as quantity, quality, use of chemicals, traceability, processing, packaging & branding, etc. are devised with careful thought. FPO can deploy advanced technologies to assist them in estimating production, understanding the buyers & markets, understanding pricing power and export opportunities. 

Then, there is a huge ambiguity about landholdings. As a result, the "workers" or landless farmers miss out on most of the entitlements and remain poor, helpless and prone to suicides. A sub-leasing agreement that is officially certified would benefit the leasor through surety of ownership and leasee by govt entitlements. As such, govts and institutions like banks can identify each relevant party and support their activities. 

Lastly, the vast majority of marginal farmers have little or no credit supplied through official channels, be it commercial banks, co-operative banks or rural development banks. Govt's measures on farmer credit, such as interest subvention scheme are entirely wasted as they fail to reach the very people they are designed for!! Kisan credit card (KCC) is a cash credit card with low-interest rates (~4%). KCC is not limited to land-holding farmers as it is available for tenant farmers, tribal farmers, livestock farmers and fisheries farmers. KCC gives credit, not only for production but also for personal use. According to NABARD official, NPA risk is similar to the sector.

Role of farmer producer organization (slide 17+)

WATER MANAGEMENT and LAND USE in hilly terrains Link

Climate change is expected to increase extreme flooding events in highlands and reduce rainfall in lowlands. World Bank's initiative in Himachal sets out a way to derive more through better water management & land use. 400,000 farmer households will benefit from a loan of just $80 million!!

1. Better hydrological information: Hydrological monitoring stations will be set up in upper reaches, to monitor water quality and quantity of flow.

2. Better water infrastructure: It starts with devising holistic "catchment area treatment" (CAT) plans. It then, targets construction of micro-watersheds in the upper catchment areas, with local help, to increase the year-long supply of water there and to channel water more effectively downstream (ie. improves sustainability of source). Lastly, it creates irrigation facilities downstream and increases their use by rationing water (for agriculture and general-purposes) through charges for water.

3. Better land-based resource management: It advocates a shift from low-value cereal production to climate-resilient crop varieties and higher-value fruits, vegetables, and aromatic & medicinal plants. The aim is to maximise the financial returns on the water used. State land plans will help in all aspects, including setting up infrastructure, training local population, facilitating the shift in production, and marketing of produce.

CLEAN INDIA MISSION - incl. Solid and Liquid Waste management

Govt's new mission called Swachh Bharat phase 2 (Gramin) or ODF plus will fund individual toilets (as the need arises), community toilet complexes (CMSC) in villages, and infrastructure for delivering solid and liquid waste management. The target completion is five years to 2024-25. A total outlay is an impressive Rs 141,000cr, made up by direct budgetary support, MNREGA funding and user charges.

SLWM aims to tackle waste under four headings, namely plastic waste, bio-degradable solid waste (of humans and animals), greywater, and faecal sludge. The infrastructure for SLWM includes compost pits, soak pits, waste stabilisation ponds, material recovery facilities etc.

DRINKING WATER MISSION - piped water supply to households

Jal Jeevan Mission (JJM) is a flagship programme to supply piped water to all households. It is a highly significant one, as only 3.5cr out of 18.5cr households have a functional tap. The target completion is five years to 2024-25. A total outlay is a huge Rs 360,000cr, made up by direct budgetary support, extra-budgetary borrowings and user charges.

The mission has to work in synergy at central, state and local levels as each plays their part. It has to deal with problematic aspects such as critical water situation present in 1500 out of 6800 blocks, unique designs to fit with varied water sources, contaminated groundwater and financial viability of connecting and providing good quality water to remote households.

Jal Jeevan Mission will use reliable, all-year-round sources of water. It will also institute water conservation measures to improve sustainability and availability of water, such as rainwater harvesting, renovation or rejuvenation of tanks and lakes, reuse of wastewater after recycling, development of recharge structures, desalination, watershed development and intensive afforestation. 

Surface water or stored rainwater is the ideal source for the water, as there are no concerns about contaminated groundwater. This is being done under Mission Bhagiratha in Telangana, for supplying 6.5m households with safe piped drinking water. Dr Indu, an advisor to JJM is impressed by the water treatment process in fluoride-affected areas, appreciated the water quality analysis done by Spectrophotometry, and says Mission Bhagiratha could be the role model for JJM.

Thursday, February 20, 2020

A brief look at Pakistan's govt debt and its ability to sustain it
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Here is an interesting method for assessing the sustainability of govt debt. Sustainability of govt debt should depend on the ability of the government to garner enough govt revenues, which is the sum of all govt receipts excluding capital receipts in any year. In this method, debt is expressed as a multiple of govt revenues, and debt becomes unsustainable if the multiple becomes too big or grows too fast.

5-year IMF forecasts are a neat way of taking care of other variables. For example, dynamics of fiscal deficit, GDP growth rates, inflation, currency devaluation, etc will be reflected in predictions for govt debt and govt revenues.

Highlights

1.  A sharp fall in govt debt btw 2002 to 2008, and a sharp but short-term boost to govt revenues.
2.  The decadal, relentless rise of govt debt as % of GDP, but matched by govt revenue growth.
3.  From 2017, govt revenues as % of GDP falls, whilst debt increases sharply. 
4.  IMF paints a grim picture as debt heads towards 90% of GDP whilst govt revenues are limp.
5.  Servicing interest will eat up a big share of govt revenues, cripple development and stymie social projects.

Why is the fiscal response so different in 1998 and now?

1. From 1998 to 2017
Pakistan had a fiscal and currency crisis in the late 1990s. This would have caused external debt to soar and a slowdown to follow. The smaller currency crisis happened in the early 2010s.

From 2005 to 2018, govt debt as % of GDP was following a similar pattern to govt revenues as % of GDP. Whereas debt has risen steadily from lows of 52% to 72%, govt revenues have risen from 13.2% to 15.5% of GDP. It is seen that the very high debt in 2000-2003 (at 77- 82% of GDP), was brought down to 52%, which is only partly explained by a near 4% point spike in govt revenues

2. From 2017 to 2024 (prediction)
From 2017 to 2019, debt is rising at a faster rate than before 2017. Debt continues to rise in the forecast years to 2024 to reach 85% of GDP (or an 8% point increase in the five years). From 2017 to 2019, revenue has fallen by 0.4% of GDP. It falls by a further 0.4% in the forecast years. 

By 2024, debt levels are the highest in over 25 years, but govt revenue is at standstill. The gap between debt and revenue (see chart) is almost as large as in the late 1990s/ early 2000s.

3. Pakistan is incapable of raising Tax to GDP ratio in a short span of years
The country is not tax compliant. There is too much corruption in the elite, so their taxes will simply not increase. Indirect taxes can be raised but a spike in tax rates of any form will create a vicious political backlash. 

4. War of Terror in 2001 helped Pakistan through the 1998 debt crisis
It is well known that WOT gave Pakistan various sources of monies, upfront and hidden (eg US & Saudi aid, drug dealing, CIA secret funding). It showed up as a spike in govt revenues and vanished just as fast. Debt as a % of GDP fell like a stone, which can only happen if the fiscal deficit was converted into a fiscal surplus. It follows that normal govt expenditure (incl defence spending) was paid for by other means. 

5. There is no easy money now
The geopolitical outlook in 2020 is very different from the turn of the century. Previous alliances have fallen away and monies from those sources have dried up. China, its' only benefactor today, may help, but we know China is not a donor. Besides, China is consistently raising govt debt, and increasing the govt debt to govt revenue ratio.

Data source

Wednesday, February 19, 2020

Moving over to Euro-VI is a disruption but well worth the effort


In 2010, India adopted Bharat Stage-III fuel with a sulphur content of 350 ppm. This was reduced to 50 ppm by 2017, and now to just 10 ppm. In comparative terms, BS-VI fuel emission standards are as good as CNG!! The reduction in NOx for BS-VI is 25% in petrol cars and 70% in diesel cars. The absence of so much sulphur and NOx will make people breathe a little easier and feel a little happier. But, the switch from Euro-IV to Euro-VI in just 3 years, is a momentous feat not seen in India or any other major economy. 

Indian Oil Corp (IOC) which controls roughly half the fuel market, said almost all the refineries began producing ultra-low sulphur BS-VI petrol and diesel by the end of 2019. This means the same has reached storage depots and will flow from all petrol stations in time for April 1st, 2020. 

Sanjiv Singh, the Chairman says great care was taken so that every drop of old, higher-sulphur fuel was flushed out in depots, pipelines and tanks before being replaced by BS-VI. He is confident of disruption-free switchover across the country and says the quality of the fuel is as good, or better than anywhere in the West.

Besides oil refineries, it was a herculean effort for auto manufacturers to redesign engines best suited for BS-VI. Yet, both avoided making the investments twice over by skipping one intermediary stage. For example, IOC spent about Rs 35,000 crore on the current upgrade but spent Rs 60,000 crore on two previous switchovers. "It was a conscious decision as otherwise, it would have prolonged the journey by 4 to 6 years."

Preponed supply to the National Capital Region
Originally, Delhi and its adjoining towns were to have BS-VI fuel supplies by April 2019 and the rest of the country from April 2020. But oil marketing companies made the switch to BS-VI grade fuels in Delhi on April 1, 2018. This was extended to 4 contiguous districts of Rajasthan and 8 districts in UP on April 1, 2019, together with the city of Agra; and to 7 districts of Haryana from October 1, 2019.

Previous upgrades and reduction in pollution 1. Low lead petrol was introduced in different parts of the country in phases btw 1994 to Feb 2000. Lead content was progressively eliminated.
2. Octane reduction due to lead removal was made up by installing new facilities in refineries. The RON number (for octane presence) was increased to 88 in BS-1 and 91 later.
3. BS-1 & BS-2 norms were introduced for new vehicles from April 2000 to 2001 in metros. Benzene content was reduced in stages from 5% to 1% nationwide.
4. Cleaner ethanol and methanol blends were pursued from the 2000s.
5. Particulate Matter (PM), a major pollutant from old diesel vehicles, will be reduced in BS-VI fuel. India switches over to the cleanest petrol and diesel

Friday, February 14, 2020

Two Defence Industrial Corridors


1. Defence Industrial Corridors were proposed for Uttar Pradesh and Tamil Nadu in Feb 2018 Budget and later refined into regional nodes in each state, for setting up MSME units & new industrial complexes

1a) Zones in UP are Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, and Lucknow.

1b) Zones in TN are Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli.

2. Govt, PSU and private industry stakeholder meetings took place in each zone. UP meets (Aug 2018) raised Rs 3700 cr, while TN meets (Jan 2019) raised Rs 3100cr. By mid-2019, Govt had appointed DPR consultants for both. Link

3. In the interim, PSUs firmed up initial plans. Hindustan Aeronautics Limited (HAL) would make a capital investment of Rs.1200 crore over 5 years in units at Lucknow, Kanpur, Korwa, and Naini; and OFB to undertake a modernization drive for enhancing the quality of production and cost-effectiveness.

4. The DICs are aimed at connecting existing defence PSUs and facilitating their growth. MSMEs are at the heart of the concept, as their support will make DPSUs capable enough to fulfil rising defence demands. A well-planned and efficient defence industrial base would create a competitive milieu that is attractive for global defence companies. 

5. For example, production of spares and after-sales support will be sited in India (wherever possible), through industrial partnerships btw foreign manufacturers and Indian industry. This was enabled for Russian equipment and provided in the Intergovernmental Agreement (IGA) at 20th India-Russia Annual Summit at Vladivostok, Russia (Sept 2019). Defence minister says steps will be taken by both parties to facilitate Russian OEMs to take necessary actions for this collaboration. India is also "eager to see several joint industrial activities on the basis of agreements signed in the near future." Link

6. DICs will promote regional growth and create 350,000 new jobs (a/c to Defence minister), particularly in MSMEs closely allied with PSUs. Further points are made in this blog from Feb 2019: 
Nirmala Sitharaman: Providing Impetus to Indigenous Industry

7. In Feb 2019, UP has come out with an incentive policy (borrowed from Gujarat & TN) aimed particularly at the manufacture of small arms, ammunition, and explosives, for offset work and for setting up aircraft maintenance, repair and overhaul facilities. A common facilitation centre would support MSMEs within the corridor with soft loans and land equity. Bundelkhand region was granted 50% extra capital subsidy. Link

8. UP govt expects to attract industrial investment of Rs 20,000cr and create 250,000 jobs. Land banks would be a key enabler. UP govt had by Feb 2019 identified 5000 ha of land in the zones and underlying infrastructure work was started.

9. UP's Bundelkhand Defence Industrial Corridor in Jhansi district is the flagship zone. Foundation infrastructure of Rs 40,000cr would be built there, including Bundelkhand expressway (14,000cr), water projects (9000cr), railway line, rail coach factory, etc. Jewar airport (one of the biggest in India), Eastern & Western Freight Corridors, Purvanchal & Ganga expressways, and Ganga waterway are major, ongoing infrastructure projects that facilitate connectivity to DIC zones in Uttar Pradesh. Routine civil flights have started from Lucknow to Varanasi, Moradabad, Agra, Jhansi and Bareilly.

10. By Feb 2020, 10,000 ha was held in land bank mainly in Jhansi and Aligarh. Rs 50,000cr MOUs were signed with more pending. It is entirely possible that total investments and jobs created in UP will exceed plan estimates. Link


11. Tamil Nadu Defence PSUs were infused with innovation as IIT Madras became the ‘Knowledge Partner’ of Tamil Nadu Defence Corridor. It has signed MoUs with OFB (Centre of Excellence for Ammunition) and with Bharat Electronics in explosives technologies.

12. Small enterprises are also benefiting. IIT Madras' incubations were displayed by start-ups in Def 2020, with novel technological solutions like "Multi-Role Expendable UAVs", NG Fire Control Network, and Ramjet Projectile Technology within Artillery projectiles.

13. In Dec 2019, TN state govt had identified land near each zone (so-called "Defence Quadrilateral"), and signed MoUs with DRDO, for the benefit of existing & vibrant MSME defence ecosystem and for new entrants. Under this, firms will benefit from DRDO manufacturing patents, which entrepreneurs can exploit for domestic and export sales. A new R&D centre will be set up and will be groomed by DRDO scientists.

14. Specialist defence activities have been identified at some sites. For example, Aerospace Park in Sriperumbudur is being set up by SIPCOT in 250 acres of land. Advanced Computing and Design Engineering Centre would come up and offer cutting edge technology and state-of-the-art infrastructure to support incubation and innovation. Details on many more projects are found here. Link Link.

15. In Feb 2020, a JV btw L&T and European Missile firm (MBDA) has been set up in Coimbatore DIC zone, TN. It will manufacture missiles and support integration of the missiles on Indian platforms. The firm expects to tender for Indian contracts as a Make-in-India entity.


Dr Reddy says DRDO has opened up its 1,500 patent portfolios, along with the new Transfer of Technology (ToT) policy and launched a Technology Development Fund (TDF). It has signed more than 900 ToT agreements with industries, and over 1,800 industries have joined hands with DRDO in delivery of various components, subsystems and technologies.

Under new ToT policy, there is no fee or royalty for industry partners, who join as Development cum Production Partners and Development Partners. For others, only five per cent ToT fee will be charged.

“Many friendly countries have shown an interest in the possibility of acquiring the DRDO-developed systems. This is an apt time for Indian industry to join hands with DRDO to deliver defence systems and technologies to the Indian defence forces,” says Director, Directorate of Industry Interface and Technology Management, DRDO.

Some industries have already achieved the capability and the capacity to become the lead system integrator in certain areas. Some have become suppliers to the global supply chain and have started exporting DRDO-developed products to friendly countries.