As a major move towards Atmanirbhar Bharat (self-reliant India) in defence manufacturing, the Union Minister of Defence, Rajnath Singh, has released the third positive indigenisation list of 101 items, comprising major equipment and platforms, in New Delhi (Delhi) to develop India as a defence manufacturing hub.
- The list is notified by the Department of Military Affairs, Ministry of Defence (MoD) and emphasizes equipment and systems that are being developed and likely to be translated into firm orders, with more than Rs. 2,10,000 crores in orders expected to be placed on Indian industry in the next five years.
These weapons and platforms are planned to be indigenised progressively with effect from December 2022 to December 2027.
Third “Positive Indigenisation List”:
It is based on the first list of 101 items and the second list of 108 items that were promulgated on August 21, 2020, and May 31, 2021, respectively.
i.The third “positive indigenisation list” contains 101 key pieces of defence equipment, bringing the total number of items on the three lists to 310.
ii.The commodities on the list will no longer be imported by the Ministry of Defence (MoD). Instead, in accordance with the terms of the Defence Acquisition Procedure (DAP) 2020, these 101 products will be incrementally procured from indigenous sources.
iii. The third list comprises highly complex Systems, Sensors, Weapons and Ammunitions like Light Weight Tanks, Mounted Arty Gun Systems (155mmX 52Cal), Guided Extended Range (GER) Rocket for PINAKA MLRS, Naval Utility Helicopters (NUH).
- It also includes Next Generation Offshore Patrol Vessels (NGOPV), MF STAR (Radar for Ships), Medium Range Anti-Ship Missile (Naval Variant), Advance Light Weight Torpedo (Ship Launch), High Endurance Autonomous Underwater Vehicle, Medium Altitude Long Endurance Unmanned Aerial Vehicle (MALE UAV), Anti-Radiation Missiles, Loitering Munitions.
Proposed 3rd Positive Indigenisation List
iv.It should be mentioned that a contract worth Rs. 54,000 crores have been executed so far based on the first and second indigenisation lists, with orders worth Rs. 4.5 lakh crores anticipated to be placed in the next five to seven years.
Key Points:
i.This third positive indigenisation list, which has items banned for import, has been prepared after in-depth consultations with all stakeholders, such as Defence Research & Development Organization (DRDO), Department of Defence Production (DDP), Service Headquarters (SHQs) and the private industry.
ii.The positive indigenisation lists will stimulate indigenous Research & Development (R&D) by attracting fresh investment into technology and manufacturing.
DRDO Transfers Technology to Industry
i.The DRDO has signed 30 Transfer of Technology (ToT) agreements with 25 firms to help enhance local manufacturing.
- A total of 21 technologies developed by 16 DRDO facilities across the country were also handed over to industry by the Defence Minister.
- DRDO has inked around 1,430 ToT agreements with Indian industry so far, with over 450 ToT agreements struck in the last two years, which is a record milestone.
ii.The technologies include quantum random number generator (QRNG), counter drone system, laser directed energy weapon system, missile warhead, high explosive materials, high grade steel, specialized materials, propellants, surveillance and reconnaissance, radar warning receivers, mine barriers, firefighting suits, anti-mine boots, etc.
Government of India’s Support for Indigenisation
About 68% of the defence capital budget has been earmarked to procure from the domestic industry.
In addition, 25% of the defence R&D budget is reserved for the industry, start-ups and academia and for corporatization of the Ordnance Factory Board.
Major Items On the Positive Indigenisation Lists
First List: it includes 155mm/39 Cal Ultra-Light Howitzer, Light Combat Aircraft (LCA) Mk-IA – Enhanced Indigenised Content, conventional submarines and communication satellites GSAT-7C.
Second List: it includes the next-generation Corvette, Land-Based MRSAM Weapon System, Smart Anti-Field Weapon System (SAAW) Mk-I and Onboard Oxygen Generation System (OBOGS) based integrated life support system for fighter aircraft and 1000HP Engine for Tank (T-72).
