§1Who it is for

  • Indian companies (incl. MSMEs) that can design and develop a full equipment, system, platform or upgrade for the Army, Navy or Air Force

Useful if

Engineering firms with design teams and capital to co-fund large prototype development over several years

Do not spend time on it if

Micro units or job-shops without design capability or working capital for multi-year development

§2Eligibility

  1. Indian Vendor as defined in Para 20, Chapter I of DAP 2020 — for licensable products, an Indian entity complying with DPIIT licensing; otherwise any Indian entity registered under Indian laws
  2. Ownership by resident Indian citizens: more than 50% of capital owned by resident Indian citizens / Indian companies ultimately owned by them — i.e. FDI capped at 49%, no pyramiding, indirect foreign investment counted
  3. Control by resident Indian citizens (as defined in Companies Act 2013) — right to appoint majority of directors or control management/policy
  4. Other technical and financial criteria as per Appendix F of Chapter III (project-specific)
  5. Projects under Make categories with procurement not exceeding Rs 100 Cr/year (at AoN stage) are earmarked for MSMEs; opened to all if at least two MSMEs do not express interest

§3Benefits

  • MoD funds up to 70% of prototype development cost, or maximum Rs 250 crore per Development Agency (DA)
  • Successful development leads to procurement under Buy (Indian-IDDM) with minimum 50% indigenous content
  • Minimum Order Quantity (MOQ) committed at AoN stage (SoC must state MOQ)

§4Norms — pattern of assistance

  1. Govt share: up to 70% of prototype development cost or Rs 250 crore per DA; final % may vary case to case
  2. Advance of 20% of agreed MoD share paid against an equal bank guarantee
  3. Balance paid stage-wise against DPR milestones; DA claims with CEO + auditor/CA certificate; SHQ reimburses within 60 days (extendable 30 days in exceptional cases)
  4. If project foreclosed for reasons beyond SHQ control, DA reimbursed MoD share of cost incurred within three months
  5. Feasibility study target: 16 weeks for Make-I
  6. AoN taken on combined cost of prototype phase + subsequent Buy (Indian-IDDM) procurement

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Watch Expression of Interest (EoI) notices for Make projects on DDP / Make in India Defence portal

  2. 2

    Respond to EoI; Services HQ shortlists Development Agencies, who submit Detailed Project Reports (DPRs)

  3. 3

    Develop prototype under Project Facilitation Team (PFT) oversight; trials; then commercial RFP to successful DAs

§7Pros and cons

Merits

  • Government pays up to 70% of prototype cost (cap Rs 250 crore per DA) — DAP 2020
  • Path to an assured MOQ order under Buy (Indian-IDDM) after successful development — DAP 2020
  • MSME earmarking for smaller projects (procurement up to Rs 100 Cr/year) — DAP 2020

Demerits

  • Few projects: MoD told Parliament (Mar 2021) only four Make-I projects were ongoing
  • Firm must fund at least 30% of prototype cost and give a bank guarantee for the 20% advance — DAP 2020
  • Development, trials and AoN chain is long; Standing Committee (Dec 2023) noted 23 of 55 DRDO projects were not completed on time (shows typical defence development delays)
  • Foreign-owned firms (>49% FDI) are not eligible — DAP 2020 Para 20

→Related schemes

Need help with DAP Make-I?

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Defence Acquisition Procedure 2020 (as amended, Nov 2021) — full text, DDP
  2. PIB, MoD — Manufacturing in Defence Sector, Lok Sabha reply 4 Feb 2022 (Release ID 1795537), mirrored by GlobalSecurity
  3. Ajai Shukla blog — MoD reply in Parliament on Make category (Mar 2021)
  4. Acuity Law — Amended Defence FAQs (17 Jun 2026, Japanese edition)
  5. Ishan Jayant Tewari — DAP 2026: From Made in India to Owned by India (commentary, Oct 2026)
  6. PRS — Standing Committee on Defence report on DRDO (20 Dec 2023) summary

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.