Defence Ministry Seeks Additional Funds for iDEX Scheme

14-10-2024

In Oct 2024, The Ministry of Defence is looking to expand its flagship Innovations for Defence Excellence (iDEX) scheme and has requested more funding from the Finance Ministry.
This comes as the current budget for the scheme has nearly been used up.

The total budget for iDEX is Rs 498.78 crore for five years, from 2021-22 to 2025-26.
As of now, approximately 90% of these funds have been spent.
iDEX aims to support around 300 startups, MSMEs (Micro, Small and Medium Enterprises), and individual innovators, as well as about 20 partner incubators, to develop advanced defence and aerospace technologies.

Achievements Under iDEX:

By August 2024, 37 products developed under iDEX, valued at Rs 2,370 crore, have been approved for procurement.
Contracts for 21 products, worth Rs 800 crore, have already been signed.
The scheme has seen significant engagement, with over 300 challenges announced and recognized as iDEX winners.

Due to the high uptake and success of the scheme, additional funds are necessary for further projects.
An estimated Rs 497.15 crore is needed to continue signing contracts with iDEX winners.
Defence Secretary has communicated the necessity of these funds to the Finance Ministry.

The Revised Cost Committee (RCC) has recommended additional funding in 2023.
A third-party evaluation of the scheme is underway and expected to be completed within the current financial year.
Once additional funding is approved, the total cost of the iDEX scheme will rise to around Rs 996 crore.

Initially, the grant for iDEX winners was Rs 1.5 crore, but this was later increased to Rs 10 crore through the expanded iDEX Prime.
This change responds to feedback that the earlier amount was insufficient for developing complex defence systems.

Launch: Initiated by the Prime Minister in 2018.
Objective: To promote innovation and technology development in the defence and aerospace sectors by engaging innovators and entrepreneurs to provide advanced solutions for modernizing the Indian Military.
Platform: iDEX serves as a collaborative space for stakeholders to co-create and develop innovative defence technologies.

iDEX conducts various challenges to stimulate innovation among Indian start-ups, MSMEs, and individual innovators:

Defence India Startup Challenge (DISC)
Open Challenge
Thematic Open Challenge
Advancing Defence Innovation Acing Development of Innovative Technologies (ADITI) Challenge

Engagement: Involves various stakeholders, including:Industries, MSMEs, Start-ups, Individual innovators, R&D institutes,Academia.
Support: Provides grants, funding, and additional support for R&D activities with potential for adoption in Indian defence and aerospace.

Defence Innovation Organization (DIO):
1. Formed as a not-for-profit company under Section 8 of the Companies Act 2013.
2. Established by Defence Public Sector Undertakings (DPSUs), namely Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL).
3. iDEX functions as the executive arm, executing initiatives while DIO offers high-level policy guidance.

Facilitate: Accelerate the development of new, indigenized, and innovative technologies for the Indian defence and aerospace sectors, enabling faster response to sector needs.
Promote a culture of engagement with innovative start-ups to promote co-creation in defence and aerospace technologies.
Empower: Enhance a culture of technology co-creation and co-innovation within the defence and aerospace sectors.

Earlier this year, the Defence Minister launched the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, offering grants of up to Rs 25 crore for research and development in critical defence technologies.
The ADITI scheme has a budget of Rs 750 crore for 2023-24 to 2025-26 and aims to address the needs of modern armed forces.
In the first round of ADITI, 17 challenges were announced, focusing on the needs of different branches of the armed forces.

The Minister also launched ADITI 2.0, which includes 19 new challenges in areas like artificial intelligence, quantum technology, and military communications.
Additionally, the 12th edition of Defence India Start-up Challenges (DISC 12) was launched, presenting 41 challenges across various technology domains, with grants of up to Rs 1.5 crore.