§1Who it is for

  • Indian MSMEs, startups and companies that can develop equipment, sub-systems, components, materials, ammunition or software for import substitution at their own cost

Useful if

MSMEs/startups with a near-ready product that the Army, Navy or Air Force currently imports

Do not spend time on it if

Firms that cannot self-fund 1–3 years of development and trials

§2Eligibility

  1. Indian Vendor per Para 20 of Chapter I incl. ownership (>50% resident Indian; FDI max 49%) and control by resident Indian citizens
  2. If prototype development cost is up to Rs 3 crore and procurement below Rs 100 Cr/year (at AoN): no commercial or financial criteria
  3. If prototype cost above Rs 3 crore and/or procurement above Rs 100 Cr/year: average annual turnover of last 3 FYs not less than 5% of estimated project cost (lead partner for JV) and positive net worth at end of previous FY
  4. Other technical criteria set by the Services HQ per project
  5. OFB (now its successor DPSUs) and DPIIT-recognised startups are also eligible
  6. Projects with procurement not exceeding Rs 100 Cr/year are earmarked for MSMEs (opened to all if fewer than two MSMEs show interest)

§3Benefits

  • No grant — but procurement is assured if prototype is developed successfully (MoD reply to Parliament, 2021)
  • Successful product bought under Buy (Indian-IDDM) with minimum 50% indigenous content
  • Suo-moto proposals from even a single firm or individual can be progressed as Resultant Single Vendor
  • Approval in Principle (AIP), once granted, is not retracted even if DRDO/DPSU is developing the item (PIB, Feb 2022)

§4Norms — pattern of assistance

  1. Industry bears 100% of prototype development cost — no Government funding
  2. Feasibility study target: 12 weeks from commencement for Make-II/Make-III
  3. AoN sought only for the cost of final procurement under Buy (Indian-IDDM)
  4. SoC records MOQ, development timeline, estimated prototype cost and foreclosure criteria

§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

    Check Make-II EoIs on DDP home page / Make in India Defence portal and respond by the stated date (DDP lists email addresses for responses)

  2. 2

    Or send a suo-moto Make-II proposal to the Services HQ

  3. 3

    After AIP and EoI, selected DAs develop prototype at own cost; trials; then commercial bid

§7Pros and cons

Merits

  • Low entry bar for small projects: no financial criteria if prototype cost up to Rs 3 crore — DAP 2020
  • MSMEs get earmarked projects (procurement up to Rs 100 Cr/year) — DAP 2020
  • Startups recognised by DPIIT are eligible — DAP 2020
  • Single-firm suo-moto ideas can proceed as Resultant Single Vendor — DAP 2020 / PIB 2022

Demerits

  • Firm carries full development cost and risk; no reimbursement under Make-II — DAP 2020
  • Order only after successful trials; trials and AoN-to-contract timelines are set by the Services, not the firm
  • Of 56 Make-II proposals with AIP, only 23 had reached AoN by Mar 2021 (MoD reply reported by Ajai Shukla)
  • Single buyer: the Services HQ that raised the need

→Related schemes

Need help with DAP Make-II?

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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. Department of Defence Production — home page (Make-II EoIs listed, Oct 2026)
  3. PIB, MoD — Manufacturing in Defence Sector, Lok Sabha reply 4 Feb 2022 (Release ID 1795537), mirrored by GlobalSecurity
  4. Ajai Shukla blog — MoD reply in Parliament on Make category (Mar 2021)
  5. Acuity Law — Amended Defence FAQs (17 Jun 2026, Japanese edition)

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