346 More Defence Items Worth ₹1,048 Crore Removed from Import List

346 More Defence Items Worth ₹1,048 Crore Removed from Import List

Sub: Eco

Sec: External Sector

Overview:

• The Ministry of Defence (MoD) has notified the 5th ‘Positive Indigenisation List (PIL)’ consisting of 346 items.
• The aim is to reduce dependence on imports by allowing defence PSUs to place orders worth ₹1,048 crore with domestic vendors.

Purpose:

• The initiative is led by the Department of Defence Production (DPP) under the MoD to boost self-reliance (aatmanirbharta) in the defence sector.

Defence PSUs Involved:

• Hindustan Aeronautics Ltd (HAL)
• Bharat Electronics Ltd (BEL)
• Bharat Dynamics Ltd (BDL)
• BEML Ltd
• India Optel Ltd (IOL)
• Mazagon Dock Shipbuilders Ltd (MDL)
• Goa Shipyard Ltd (GSL)
• Garden Reach Shipbuilders & Engineers Ltd (GRSE)
• Hindustan Shipyard Ltd (HSL)

Implementation:

• These DPSUs have started the process of issuing expressions of interest/requests for proposals on their websites, linked to the ‘Srijan Portal’.
• Industry, MSMEs, and start-ups are encouraged to participate.

Indigenisation Achievements:

• Over 12,300 items have been indigenised in the last three years.
• This has resulted in DPSUs placing orders worth ₹7,572 crore with domestic vendors.

Total Indigenisation Efforts:

• By June 2024, over 36,000 defence items were offered to the industry for indigenisation.
• More than 12,300 items have been indigenised in the last three years.

Positive Indigenisation List (PIL)

Concept: The Positive Indigenisation List entails that the Indian Armed Forces (Army, Navy, Air Force) will source specific items exclusively from domestic manufacturers. These manufacturers include private sector entities and Defense Public Sector Undertakings (DPSUs).

Objectives:

• Align with India’s vision of ‘Atma Nirbharta’ (self-reliance)
• Boost the domestic defense industry
• Enhance investment
• Reduce dependency on imports

Procurement and Industry Participation:

• DPSUs’ Role: Initiate procurement actions for the items listed in the fourth PIL.
• Srijan Portal Dashboard: Designed to facilitate the procurement process, encouraging industry participation.