§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
- 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
- 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
- Control by resident Indian citizens (as defined in Companies Act 2013) — right to appoint majority of directors or control management/policy
- Other technical and financial criteria as per Appendix F of Chapter III (project-specific)
- 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
- Govt share: up to 70% of prototype development cost or Rs 250 crore per DA; final % may vary case to case
- Advance of 20% of agreed MoD share paid against an equal bank guarantee
- 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)
- If project foreclosed for reasons beyond SHQ control, DA reimbursed MoD share of cost incurred within three months
- Feasibility study target: 16 weeks for Make-I
- AoN taken on combined cost of prototype phase + subsequent Buy (Indian-IDDM) procurement
§5Documents
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
Watch Expression of Interest (EoI) notices for Make projects on DDP / Make in India Defence portal
- 2
Respond to EoI; Services HQ shortlists Development Agencies, who submit Detailed Project Reports (DPRs)
- 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
- Defence Acquisition Procedure 2020 (as amended, Nov 2021) — full text, DDP
- PIB, MoD — Manufacturing in Defence Sector, Lok Sabha reply 4 Feb 2022 (Release ID 1795537), mirrored by GlobalSecurity
- Ajai Shukla blog — MoD reply in Parliament on Make category (Mar 2021)
- Acuity Law — Amended Defence FAQs (17 Jun 2026, Japanese edition)
- Ishan Jayant Tewari — DAP 2026: From Made in India to Owned by India (commentary, Oct 2026)
- 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.
