Defence Testing Infrastructure Scheme

The Ministry of Defence has initiated private-sector participation in the launch and operations of testing facilities for military equipment. Defence Testing Infrastructure Scheme (DTIS) was formed in the year 2019 with the mission to support the MSMEs (Micro, Small and Medium Enterprises) and bridge the gap in defence testing infrastructure in the country. Defence Testing Infrastructure is a capital demanding prospect that requires continuous upgradation. The Ministry of Defence is extending the financial assistance in the form of Grant-in-Aid limited to the total amount of Rs.400 crore for setting up of Greenfield Defence Testing Infrastructures (DTIs) in several verticals.

Objectives of the Scheme

The scheme is launched in the country to achieve the following objectives:

• To encourage ethnic defence production with a special focus on the involvement of MSMEs and budding entrepreneurs by concreting the differences in the Nation’s defence testing infrastructure.
• To provide easy access and thus meet the testing needs of the domestic defence

Scope of the Scheme

The Scheme targets on bringing the private sector into the aspects of testing and endorsing as the manufacturers of the defence tools, equipment and systems. The following are the other targets that the scheme proposes for defence testing:

• Testing facilities for Drones including the Unmanned Aerial Vehicles (UAVs) with the Remotely Piloted Aircrafts (RPAs).
• Electromagnetic Interference (EMI), Electromagnetic Compatibility (EMC) Testing for Radars, UAVs/RPAs and Electronic or the Telecom equipment
• Rubber Testing for Defence and AerospaceSectors
• Radiated Noise and ShockTesting, Electronic Warfare
• Software Testing, Specialised Test Driving Tracks
• Ship MotionTesting, Test Facilities for Aerospace Industry
• Ballistic and Blast Testing Facilities, Environmental Test Facilities

Eligible Implementation Agencies

• The minimum of 7 private bodies that are enrolled in India is comprised of the only qualified units for establishing the Implementation Agency.
• The SPV shall be responsible for obtaining statutory clearances required for testing of weapons and ammunition.

Financial Assistance under the Scheme

• The Central Government of India is allocating the assistance of Rs.400 Crores under the scheme for setting up 06 to 08 DTIs in the form of Grant-in-Aid. The number of test facilities under each type may vary depending upon the requirement.

• Eligible entrepreneurs obtain assistance up to 75% of the total project cost.
• The financial assistance is disbursed depending upon the authorisation of the Implementation Agency.
• The DTI Screening Committee (DTISC) headed by the Chairman is responsible for approval of the projects and is the final authority to make a decision on the proposals submitted by the Implementation
• The Chairman is supported by the Project Monitoring Committee (PMC) for the intermediate activities and the Project Consultant for the appraisal of proposals submitted by Implementation Agencies and monitor the progress.
• The land or any such assets by the Implementing Agency under the Scheme shall not be included in the Project Cost, and the same shall be considered in case of calculating the extent of contribution of the Implementation Agency.
• The Implementation Agency’s funding pattern of DTI’s is stated as below:
• In the case of the land, the SPV is liable for its provision
• A sum of 20% of the Project cost is extended on account of the Capex for building
• A maximum sum of 80% of the project cost is considered under the expenses of the Test Equipment with its Installation and Training program and solving the purpose
• The Central Government shall not be funding to the Implementing Agencies or Private Units for repetitive outlay or any launch cost under the
• With proper and prior approvals from the DTISC, the studies associated to the discovery of defence testing infrastructure differences and charting of facilities, impact study, etc. shall be done by engaging professional.

Fund Disbursement

The Implementation Agency holds responsible in implementing, commencing and deploying the grant to meet the schedule and to confirm that the grant is not rerouted for any other objectives.

• The funds are disbursed subjected to the Implementation Agency on achieving the fiscal resolution.
• The funds are generally issued to the Implementation Agency approved by the DTISC on instalments basis that are divided into 5 instalments for each
• The DTISC authorises the acceptance of the first instalment funds against the Bank Guarantee soon after the project approval.
• Release of further instalments shall be subject to:
• Furnishing the complete Utilisation Certificate
• Project Consultant (PC) evaluates and submits a report incorporating the technical possibility process and procedures, financial capability and optimal utilisation of resources
• The implementing Agencies shall provide testimonials for the investment made in the form of grants, assets and other matching contribution through various sources are to be approved with respect to the cost sharing prescribed in the RFP
• The Implementing Agencies are permitted for an Advance Payment of successive instalments on the recommendation of the DTISC provided with a matching Bank Guarantee
• The Project Consultant’s authorisation over the physical and financial progress in the form of pre-requisite for disbursing the successive instalments

General Regulations DTIS

• The Organizational set-up that includes PC, DDP, DGQA related with the Implementation Agencies shall not exceed 3% of the total funds provided under the Scheme.

• On completion of the DTI projects, the Implementation Agencies can re-own their established assets.
• The Implementation Agencies shall not be settled, taxed or used other than those for which funds have been issued for utilizing the assets purchased or built by the without the influence of the government assistance under the Scheme.
• The permanent and the semi-permanent assets are documented under the registered maintained by the Central Government in the Form GFR-
• All assets including the unutilised grant shall be assigned to the Government of India if any DTI project is cancelled or terminated in the midway of the project.

Approval

• The Implementation Agency holds responsible for getting the certification or approval from the right National and International Agencies.
• All the Operation & Maintenance of assets created under the Scheme by way of collecting user charges are undertaken by the Implementation Agencies.

Ineligibility

The Implementation Agency or any of its constituents shall be debarred on the following rules and regulations:

• When the Implementing Agencies are proved to be offensive under the Prevention of Corruption Act, 1988.
• The Department of Defence Production directs and clarifies all the issues raised regularly so that the Scheme is implemented in a proper manner and direction.
• When the Implementing Agencies are proved to be offensive under the The Indian Penal Code or any other law for the time being in force in case an individual is responsible for any loss of life or property or initiating a threat to public health.
• Proceedings against any its constituents are running under Insolvency and Bankruptcy Code (IBC).
• When the subordinate constituents of SPV (Implementation Agency) are blacklisted by the Government of India/State

As an initial project, the proposals are invited for testing facilities for drones under DTIS. The general guidelines on Defence Testing Infrastructure can be accessed below: