Defence Ministry approves procurement of 26 defence items from local suppliers to boost ‘Make in India’

On May 20, 2020  The Department of Defence Production(DDP), Ministry of Defence in order to further encourage procurement from local suppliers to boost ‘Make in India’, has approved 26 defence items out of 127 already notified have now been notified under clause 3(a) of the Public Procurement (Preference to Make in India) Order 2017.

• Therefore, procuring entities shall procure these items only from local suppliers, regardless of purchase value, and local suppliers must meet the Minimum Local Content(MLC) prescribed for each item.

Background

i.Government has issued Public Procurement (Preference to “Make in India’)- PPP-MII  Order 2017 vide Department of Industrial Policy and Promotion(DIPP) Notification dated 15.06.2017 (as amended on 29/05/2019) to encourage ‘Make in India’ and to promote manufacturing and production of goods and services in India.

ii.Under this order, Department of Defence Production (DDP), Ministry of Defence has so far notified 127 items where purchase preference is given to local suppliers as per PPP-MII 2017

Major Highlights

i.Finance Minister Nirmala Sitharaman while announcing a series of far-reaching reforms for defence sector informed the following:

• Gov will make individual budgetary provisions for procuring Indian made defence equipment to help reduce the defence import bills &  boost the Make in India scheme to make it a success post COVID-19 pandemic.
• The Government will come up with a negative list of weapons that can be banned from imports. The list will be drawn up in consultation with the Department of Military Affairs.
• With regard to imports- Non-locally manufactured essential weapons will be imported and the negative list will have a year wise timelines to reduce import dependency.

ii.The government had reiterated that the defence procurement process would be made time-bound and faster decision-making would be encouraged.

iii.The government is firm to move towards indigenisation of spare parts for foreign weapons/platforms and planes that are in service. Manufacturing of spare parts will be encouraged locally.

About Defence Ministry:
Union minister– Rajnath Singh(Constituency- Lucknow,  Uttar Pradesh)
Minister of State– Shripad Yesso Naik(Constituency- North Goa, Goa)