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Defense Research and Development Organisation (DRDO)

Context: DRDO celebrates Foundation Day. DRDO stands for Defence Research and Development Organisation. It was established in 1958 by the Government of India, under the Ministry of Defence (Raksha Mantralay). 

DRDO Latest Update –

The ‘Sindhu Netra’ satellite developed by Defence Research and Development Organisation (DRDO) was successfully deployed in space on February 28th, 2021. The satellite aims to boost the country’s surveillance capabilities to monitor the activities of both military warships and merchant shipping in the Indian Ocean Region (IOR). The satellite was launched using the Indian Space Research Organisation’s PSLV-C51 which took off from the Satish Dhawan Space Centre in Sriharikota in Andhra Pradesh.

History of DRDO

Established in 1958 by the Government of India, it was instituted by combining three major defence organisations namely:

• Defence Science Organisation (DSO)
• Defence Technical Development Establishment (DTDE)
• Directorate of Technical Development and Production (DTDP) 

With a project in 1960 on Surface-to-Air Missiles (SAM), the Project Indigo was the DRDO’s first major defence project. This project was discontinued without any success.
DRDO started with just 10 different laboratories in the country and now haw has more than 50 labs across the nation researching in different sectors of technology and defence.

List of DRDO Labs
Find all the laboratories that are administered by the Defence Research and Development Organisation below.

Integrated Guided-Missile Development Programme (IGMDP)

One of Dr. APJ Abdul Kalam’s major works was the Integrated Guided-Missile Development Programme. The intention behind this innovation was to make Indian defence forces self-sufficient in the field of missile technology. After the approval of IGMDP in 1983 from the Indian Government, DRDO brought together the country’s scientific community, academic institutions, R&D laboratories, industries and the three defence services in giving shape to the strategic, indigenous missile systems.

List of Indian Missiles by DRDO

DRDO’s MARS

The Pune-based R&DE Lab of DRDO has developed a smart robust robot to handle land mines and Inert Explosive Devices (IEDs) which will help the Indian Armed Forces to disarm them from far distances despite hostile surroundings. This robot, named Mobile Autonomous Robot System (MARS), was developed by the Electro-Mechanical Systems Group of the R&DE Lab.

Mobile Autonomous Robot System (MARS)

• The machine can operate on its own and has an in-built programme that guides the mechanical system.
• MARS can see, identify and then pick up the suspicious object which can then be transported to a designated location.
• With some add-ons, this system can even be used to dig the ground for the object and defuse the Improvised Explosive Device by various methods.
• MARS actually creates a 3-dimensional image of the object before it handles it.
• Scientists say that with basic mechanical additions, it can take several roles and can adapt to any terrain to operate in.

Utility of MARS

• MARS was displayed at the Multinational Field Exercise that was held in Pune and had Humanitarian Mine Action (MHA) as one of its focus areas.
• Several countries in South East Asia have the problem of Explosive Remnants of War (ERW) and in such scenarios, MARS can be very useful.
• In India, several insurgency and terrorism affected areas, and regions affected by Left Wing Extremism, face the problem of IEDs. MARS can be a useful tool for paramilitary forces, central police agencies and the local police in these regions.
• MARS can be operated from very long distances once a telecommunications system is fitted on it.

The R&DE will transfer the technology of MARS to the industry for manufacturing.

DRDO Sets Up World’s Highest Terrestrial Centre in Ladakh

• DRDO’s centre in Ladakh is at 17,600 feet above sea level at Changla near Pangong lake.
• It is intended to serve as a natural cold storage unit for the preservation of natural and medicinal plants. 
• The centre will also act as a research unit for food, agriculture and bio-medical sciences that will benefit the soldiers deployed at high altitude. 
• After its inauguration in 2018 by the Defence Institute of High Altitude Research (DIHAR), the centre has seen multiple activities related to Life Sciences. 

Challenges faced by DRDO

The major challenges faced by DRDO are briefly described below.

• Budget Issues
  • The SCOD (Standing Committee on Defence) during 2016-17 put forward issues related to inadequate budgets that the ongoing DRDO projects faced. 
  • This was resolved once the NDA government came in power and increased it. In 2018, the military expenditure was at its peak.
• ISRO vs DRDO
  • There have been times where ISRO has proven missions and projects to be successful like its Mars mission at costs less than some Hollywood films.
  • On the other hand, bureaucratic administration of DRDO and failure of the Ministry of Defence to evolve with time has left the part of specialized knowledge of the defence and strategic affairs vacant.
  • Due to this, ISRO is provided with greater support from the government compared to DRDO.
• Lack of Manpower
  • The DRDO also suffers from inadequate manpower in critical areas and a lack of proper synergy with the armed forces.
  • Most of the defence equipment is imported impacting the economy.
    • The organisation spends the most time in improving the previous technologies instead of working on innovative ideas and development of new cutting edge technologies.

Remission of Duties and Taxes on Exported Products (RoDTEP)

Context: Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme implemented.

Details

• Under the scheme, a mechanism would be created for reimbursement of taxes/ duties/ levies, at the central, state and local level, which are currently not being refunded under any other mechanism, but which are incurred in the process of manufacture and distribution of exported products. 
• This scheme is going to give a boost to the domestic industry and Indian exports providing a level playing field for Indian producers in the International market so that domestic taxes/duties are not exported.
• Under the Scheme an inter-ministerial Committee will determine the rates and items for which the reimbursement of taxes and duties would be provided. In line with “Digital India”, refund under the Scheme, in the form of transferable duty credit/electronic scrip will be issued to the exporters, which will be maintained in an electronic ledger. The Scheme will be implemented with end to end digitization.
• The refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports, along with refunds such as Drawback and IGST. 
  • This would lead to the cost competitiveness of exported products in international markets and better employment opportunities in export-oriented manufacturing industries.  

Salient Features

• At present, GST taxes and import/customs duties for inputs required to manufacture exported products are either exempted or refunded. 
• However, certain taxes/duties/levies are outside GST, and are not refunded for exports, such as, VAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing etc. These would be covered for reimbursement under the RoDTEP Scheme.
• The rebate would be claimed as a percentage of the Freight On Board (FOB) value of exports. 

IFSCA becomes member of IOSCO

Context: The International Financial Services Centres Authority (IFSCA) has become an Associate Member of the International Organization of Securities Commissions (IOSCO).

About IOSCO

• The IOSCO is the international organization that brings together the world’s securities regulators, covering more than 95% of the world’s securities markets.
• It is also the global standard-setter for the securities sector.
• IOSCO works closely with the G20 and the Financial Stability Board (FSB) in setting up the standards for strengthening the securities markets.
• The IOSCO Objectives and Principles of Securities Regulation have been endorsed by FSB as one of the key standards for sound financial systems.

How would IOSCO membership benefit IFSCA?

• The membership of IOSCO would provide IFSCA with the platform to exchange information at the global and regional levels on areas of common interests.
• Further, the IOSCO platform would enable IFSCA to learn from the experiences and best practices of the regulators of other well established financial centres.
• It is a significant milestone in connecting IFSCA with the regulators of securities markets globally and would contribute immensely towards the development and regulation of the financial products, financial services and financial institutions at the Gujarat International Finance Tec-City International Financial Services Centre.

Details

• IFSCA has introduced a framework for “Regulatory Sandbox”.
• Under this Sandbox framework, entities operating in the capital market, banking, insurance and financial services space shall be granted certain facilities and flexibilities to experiment with innovative FinTech solutions in a live environment with a limited set of real customers for a limited time frame.
• These features shall be fortified with necessary safeguards for investor protection and risk mitigation.
• The Regulatory Sandbox shall operate within the IFSC located at GIFT City (Gandhinagar, Gujarat).
• IFSCA shall assess the applications and extend suitable regulatory relaxations to commence limited purpose testing in the Sandbox.

What is Regulatory Sandbox?
A regulatory sandbox is a framework set up by a financial sector regulator to allow small scale, live testing of innovations by private firms in a controlled environment (operating under a special exemption, allowance, or other limited, time-bound exception) under the regulator’s supervision.

International Financial Services Centres Authority

• It is a statutory unified regulatory body under the Department of Economic Affairs, Ministry of Finance, Government of India established by an Act of Parliament to develop and regulate the financial products, financial services and financial institutions located/performed in the International Financial Services Centres in India.
• The Authority is empowered to exercise the powers of RBI, SEBI, IRDAI and PFRDA in respect of financial services, financial products and financial institutions performed/located in the international financial services centres in the country.
• The IFSCA is headquartered in Gandhinagar, Gujarat.
• The members of the Authority are appointed by the Central Government.
• They will include a Chairperson of the Authority, a member each from the RBI, SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA); and two members from the Ministry of Finance. In addition, two other members will be appointed on the recommendation of a Selection Committee.
• They will have a three-year term subject to reappointment.

What is an International Financial Services Centre (IFSC)?

• An IFSC caters to customers outside the jurisdiction of the domestic economy.
• Such centres deal with flows of finance, financial products and services across borders.
• London, New York and Singapore can be counted as global financial centres. Many emerging IFSCs around the world, such as Shanghai and Dubai, are aspiring to play a global role in the years to come.
• An expert panel headed by former World Bank economist Percy Mistry submitted a report on making Mumbai an international financial centre in 2007.
• However, the global financial crisis that unfolded in 2008 made countries including India cautious about rapidly opening up their financial sectors.
• Gujarat International Finance Tec-City Co. Ltd (GIFT City) is developed as the country’s first international financial services centre (IFSC).

Atmospheric and Climate Research-Modelling Observing Systems and Services (ACROSS)

• ACROSS scheme pertains to the atmospheric science programs of the Ministry of Earth Sciences (MoES).
• It addresses different aspects of weather and climate services, which includes warnings for cyclone, storm surges, heatwaves, thunderstorms, etc.
• The ACROSS scheme consists of nine sub-programmes which are multi-disciplinary and multi-institutional in nature and will be implemented in an integrated manner.
• As the objective of the ACROSS scheme is to provide reliable weather and climate forecast for the betterment of society, the scheme aims at improving the skill of weather and climate forecast through sustained observations, intensive R & D.
• The scheme provides improved weather, climate and ocean forecast and services, thereby ensuring the transfer of commensurate benefits to the various services.