With the aim of boosting Aatmanirbharta (self-reliance) in defence production and minimising imports by defence public sector undertakings (DPSUs), the Ministry of Defence (MoD) has notified a fifth positive indigenisation list (PIL) comprising 346 defence items.
A PIL is expected to provide assurance to the domestic defence industry, which has frequently burned its fingers by expending the money and effort on developing a defence product. It led to the MoD importing them from the global market instead.
The MoD had launched the Srijan portal in 2020. It provides a forum for DPSUs and service headquarters (SHQs) to offer defence items for indigenisation to private industries. They include micro, small and medium enterprises (MSMEs) and startups.
“Our aim is to apprise the Indian defence industry about the anticipated requirements of the armed forces, so that they are better prepared to realise the goal of indigenisation,” declared Rajnath Singh at the release of the first list in August 2020.
The items expected to be indigenised include strategically-important line replacement units (LRUs)/systems/ sub-systems/assemblies/sub-assemblies/spares and components and raw materials, with import substitution value worth Rs 1,048 crore.
The DPSUs involved in the fifth PIL include Hindustan Aeronautics Limited (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Bharat Earth Movers Ltd (BEML), India Optel Ltd (IOL), Mazagon Dock Shipbuilders Ltd (MDL), Garden Reach Shipbuilders & Engineers Ltd (GRSE) and Hindustan Shipyard Ltd (HSL).
These have initiated processes for issuing expressions of interests (EoIs)/request for proposals (RFPs) on their respective websites.
The first PIL of 101 items was promulgated by the MoD in August 2020. This was followed by a second PIL, consisting of 108 defence equipment items, taking them to 209. These were the number of items that must be compulsorily procured from Indian companies, the number rising each year up to 2025.
In this incremental manner, four PILs comprising 4,666 items have so far been notified by the MoD for DPSUs.
Of this, 2,972 items, having import substitution value worth Rs 3,400 crore, have already been indigenised.
These five lists for DPSUs are in addition to the five PILs of 509 items notified by the Department of Military Affairs (DMA). These lists include highly-complex systems, sensors, weapons and ammunition.
Till June 2024, over 36,000 defence items were offered to the industry for indigenisation by the DPSUs and SHQs. Of them, more than 12,300 items have been indigenised in the last three years. As a result, the DPSUs have placed orders on domestic vendors to the tune of Rs 7,572 crore.
The first positive indigenisation list of 101 items was promulgated by the ministry in August 2020
This was followed by a second list consisting of 108 defence equipment items
Such a list is expected to provide assurance to domestic industry, which has frequently burned its fingers by expended money and effort on developing a defence product
First Published: Jul 16 2024 | 10:42 PM IST