Unlocking Domestic Potential: MoD’s Fifth Indigenisation List for 346 Items to be Procured Locally

In pursuit of Aatmanirbharta, or self-reliance, in the defense sector and a significant reduction in imports by Defense Public Sector Undertakings (DPSUs), the Department of Defense Production (DDP) under the Ministry of Defense has unveiled its fifth Positive Indigenisation List (PIL). This strategic initiative underscores India's commitment to fostering a robust and self-sufficient defense industry, marking a pivotal step toward strengthening our national security and economic prosperity.

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The Ministry of Defence has released a list of 346 strategically important items with an estimated import substitution value of Rs 1,048 crore. This list, known as the Positive Indigenisation List (PIL), outlines items that will henceforth only be procured from Indian industries, fostering self-reliance in defence production.

This initiative is in line with Prime Minister Narendra Modi’s vision of ‘Aatmanirbhar Bharat’ and is supported by the SRIJAN PORTAL, launched in 2020, which facilitates the indigenisation process by connecting defence industries with Micro, Small, and Medium Enterprises (MSMEs) and start-ups.

The latest PIL, the fifth in the series, includes items such as Line Replacement Units, Systems, Sub-systems, Assemblies, and raw materials. The Defence Public Sector Undertakings (DPSUs) will indigenise these items through various routes, including the ‘Make’ procedure and in-house development with industry partners, stimulating economic growth and reducing import dependency.

Additionally, this move is expected to enhance the design capabilities of the domestic defence industry through collaborations with academic and research institutions. To facilitate industry participation, the DPSUs have begun issuing Expressions of Interest (EoI) and Requests for Proposal (RFP) on their websites, with links provided on the Srijan Portal Dashboard.

The previous four PILs have already resulted in the indigenisation of 2,972 items, worth Rs 3,400 crore in import substitution value. Along with the five lists for DPSUs, the Department of Military Affairs (DMA) has also notified five positive indigenisation lists of 509 highly complex systems, sensors, weapons, and ammunition.

As of June 2024, over 36,000 defence items have been offered for indigenisation by DPSUs and Service Headquarters (SHQs), with more than 12,300 items indigenised in the last three years. This has led to orders worth Rs 7,572 crore being placed with domestic vendors, showcasing the significant progress made towards self-reliance in defence production.

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