Rules for small R&D projects for start-ups simplified under Make II category of Defence Procurement

New Delhi, June 28 (KNN) To encourage start-ups undertake research projects to develop or upgrade weapon systems and to work towards reducing imports, the Defence Ministry has come out with specified new rules for home-grown startups to take part in military projects.

Under the new rules, startups recognised by the Department of Industrial Policy & Promotion (DIPP) under categories including aeronautics, nanotechnology, robotics etc will automatically qualify to take part in specified defence projects.

According to a media report, the government has simplified rules for relatively smaller research and development projects has kept the project open to all Indian companies. It has done away with any regulations for participation.

“For projects with estimated cost of prototype development phase not exceeding Rs 3 crore, no separate technical or financial criteria (will) be defined for both ‘start-ups’ and ‘other than startups’, to encourage their participation,” the new rules specify.

These new rules apply to the 'Make II’ category of defence procurement where the private industry funds the research for the product on its own and develops a prototype that is offered to the concerned service for evaluation, added the media report.

“There will be no government funding for developing the prototype there is an assurance of orders on successful development and trials of the prototype,” an official explained.

With these rules specified, the three services will now shortlist projects that can be awarded under the category.