‘MAKE –II’ SCHEME

• Background

• Process Flow : Make –II

• References

• Contact Details

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SCOPE

BACKGROUND : “MAKE” CATEGORY

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• “Make” categorisation of Defence Procurement aims at

Developing Long-Term Indigenous Defence Capabilities

Act as Vital Pillar for realising Vision behind

“Make in India” Initiative

• Acquisition's under “Make” includes

Equipment/System/Assembly/Sub-assembly

Major Components and System Upgrades

“MAKE” – DPP 2016

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“MAKE” – DPP 2016

Make

Make I

Govt. Funded

Less than Rs. 10 Cr reserved for MSMEs

Make II

Industry Funded

Less than Rs. 3 Cr reserved for

MSMEs

‘Make’ Categories

Make –I (Govt Funded)

• 90% Govt. Funding

Make – II (Industry Funded)

• Impetus for MSME/Start-ups

• Prototype Development

• Focus on Import Substitution

• Post Successful Development

of Prototype : Procurement is

through Buy (Indian IDDM)

with 40% IC

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‘Make II’ Process FlowChapter III-A of DPP 2016

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Reference : ‘www.makeinindiadefence.gov.in’

Amendement to DPP 2016 Notified vide MoD ID No.1(13)/D(Acq)/13-Pt.II dated 08 May 18

Advance Plg. & Consultation (includes accord of AIP)

Feasibility Study

Prelim. Staff Qualitative Requirements (PSQRs)

Constitution of PFT & Preparation of SoC

Categorisation & Accord of ‘Acceptance of Necessity’

(AON)

Issue of Expression of Interest (EoI)

Submission of Proposals by Vendors (EoI Responses)

“MAKE-II” : PROCESS FLOW

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Evaluation of EoI Responses

Award of Project Sanction Order (With Nil Fin.

Implication to GoI)

Design & Development of Prototype

Conversion of PSQRs to SQRs

Solicitation of Commercial Offer

User Trials

Evaluation of User Trial Report

Opening of Commercial Bids of Shortlisted Firms

Commercial Negotiations

Award of Contract (Buy-Indian: IDDM- 40 % IC)

“MAKE-II” – PROCESS FLOW

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Important Contents of EoI (RFP for Technical Bid)

Scope of Project , Qty. of Prototype

Critical Activities & Timeframes

List of Trials/ Facilities /Items (to be provided By IN) & No. of Trials

Qty. for Subsequent Procurement Under ‘Buy (Indian - IDDM)’

Acceptability of Multiple Technology Solutions

Evaluation Criteria (All firms Except start-Ups) : Technical, Commercial & Financial

For Start-Ups : Only Technical Criteria are Specified in EoI

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EXPRESSION OF INTERST

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Vital Tasks of PFT

Interface between IN & Industry during Project Execution

Receipt & Evaluation of EoI Responses

Guide the Firms during Prototype Development Stage

Facilitate Field Level Interaction of Firms

Conversion of PSQR to SQR

Issue of RFP for Commercial Offer

Review ‘User Trial’ Readiness

PROJECT FACILITATION TEAM (PFT)

EVALUATION CRITERIA “MAKE-II”CATEGORY

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Only Technical Criteria are Specified for Start Ups in EoI.

Technical Criteria for Start ups

Recognised by DIPP & Registered under SpecificCategory, Industry Domain (based on type of Project) shallbe eligible to participate under ‘Make-II’ procedure

Category (Example)

Engineering

Manufacturing

Research

Government

EoI TECHNICAL CRITERIA : START-UP

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Industry Domain (Example)

Aeronautics/ Aerospace & Defence

Analytics

Augmented/ Virtual Reality

Automotive

Automotive

Computer Vision

IT Services

Telecommunications & Networking

EoI TECHNICAL CRITERIA : START-UP

Green Technology

Internet of Things

Nanotechnology

Renewable Energy

Robotics

Security Solutions

Technology Hardware

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Fin. & Comm. Criteria (for all Except Start-Ups)

Projects having

Development Cost < Rs 3 Cr & Bulk Procurement Cost <to Rs 50 Cr : “Nil Commercial & Financial Criteria”

Projects under Make-II Sub-category, with estimatedcost of Prototype Development not exceeding Rs 3 Cr: Earmarked for MSMEs

However, if no MSMEs expresses interest for a Make-IIproject of less than Rs 3 Cr, the same may be opened up forall (iaw Para 7 of Chap III-A of DPP 2016)

FINANCIAL & COMMERCIAL CRITERIA

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Projects with :-

Prototype Development Cost > Rs 3 Cr AND/ORProcurement Cost > Rs 50 Cr, following applicable:-

Average annual turnover of the applicant companyfor the last Three financial years ending 31st Mar ofthe previous financial year should not be less than5% of the Estimated Cost of the Project

Net worth of the Entities for year ending 31st Marof the previous Financial Year should be ‘Positive’

FINANCIAL & COMMERCIAL CRITERIA

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Shortlisted Firms – ‘Development Agencies’ (DAs)

Sanction of CFA for Prototype Development by Shortlisted Firms (DAs)

Issue of Project Sanction Order to DAs – for Prototype Development with Nil fin. Implications on GoI.

Prototype Development by DAs

Readiness of Prototype by DAs for User Trials

User Trial Readiness Review by PFT

If only one vendor has developed the Prototype within timelines, Not more than ‘Two’ Extensions will be Accorded

Seek Commercial Proposal from DAs

Contract &Trials

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Commercial RFP for ‘Buy (Indian - IDDM) will be issued to all DA(s) - Min. 40% IC Vetted by Acq Wing & SHQ

Eqpt. Qty : Specified & Fixed in EoI(Cannot be changed)

Submission of Commercial Offer by DAs Prior Commencement of User Trials

SOLICITATION OF COMMERCIAL OFFERS

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PFT will Finalise Trial Methodology

SHQ to constitute Trial Team

User Trials : Essential Parameters will be Tested

User may Recommend Modifications

(for Ease of Handling but Design Modification not Allowed at this Stage)

USER TRIALS

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Staff Evaluation of Trials Reports and shortlist DAs

Open Commercial Bids of Successful DAs (who have Cleared User Trials)

Commercial Negotiation by CNC

Negotiate in case of all Single Vendor Cases , other than Resultant Single Vendor

For Import Substitutes with known LPP : Benchmarking & Price Negotiation Not Required even in

Single Vendor Case, if offered price is lower than AoNcost by 20% or more

In such cases, CFA will satisfy himself/ herself that thePrice of the Selected Offer is Reasonable wrt the AoNCost & Consistent with the Quality required.

POST USER TRIALS

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Post CNC, Procurement will be Progressed asBuy (Indian- IDDM)- 40% min. IC

Multiple Technological Solutions

Option for Proc. from L2 vendor is 70:30 Ratio, provided 2nd

DA, Accepts Terms & Conditions and Price of L1

All other Successful DAs will be given ‘Certificate’ by DDPstating ‘Successful Development of Prototype and Completionof User Trials with Indian Navy’

DA shall retain the Title or Ownership and all otherIntellectual Property generated during the development ofProject.

POST USER TRIALS

REFERENCES

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“Make in India” website :-

<makeinindiadefence.gov.in>

Link for EoI & AIP details of IN projects:-

<makeinindiadefence.gov.in/Make-II Projects/AIP >

Link for Suo Moto proposals

<makeinindiadefence.gov.in/Make-II Projects/Download Links

Chapter III A pertaining to Make II procedure

<makeinindiadefence.gov.in/Home tab- Publications/Chapter III A>

“MAKE-II” – REFERENCES

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CONTACT DETAILS

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Dte of Indigenisation

Cmde Indigenisation: Cmde PCM Velan

Office: 011- 24108377

Fax: 011- 24122689

Email: doi-navy@nic.in

Capt indigenisation: Capt Sanjeev Kumar

Office: 011- 24104052

Department of Defence Production

PO (MS) : Shri Chandandeep Singh

Telefax: 011-23106619

email:poms-ddp-mod@nic.in

“MAKE-II” – CONTACT DETAILS

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