MoD Announces Fifth Positive Indigenisation List to Boost Self-Reliance and Cut Imports

The procurement of these items will be exclusively from Indian industries, as per the timelines specified on the Srijan portal.

The Indian Ministry of Defence has taken a significant step towards self-reliance in the defence sector by notifying the fifth Positive Indigenisation List (PIL), which includes 346 strategically important items. These items, comprising Line Replacement Units, Systems, Sub-systems, Assemblies, Sub-assemblies, Spares, Components, and raw materials, have an import substitution value of Rs 1,048 crore. The procurement of these items will be exclusively from Indian industries, as per the timelines specified on the Srijan portal.

Launched in 2020, the Srijan portal serves as a platform where Defence Public Sector Undertakings (DPSUs) and Service Headquarters (SHQs) offer defence items for indigenisation to industries, including MSMEs and start-ups. This initiative aligns with Prime Minister Narendra Modi's 'Aatmanirbhar Bharat' vision, which aims to achieve self-reliance in defence production. The indigenisation efforts are spearheaded by Defence Minister Rajnath Singh.

The DPSUs will indigenise the items listed in the fifth PIL through various routes, including the 'Make' procedure or in-house development, engaging the industry and MSMEs. This initiative is expected to boost the economy, increase investment in defence, reduce import dependence, and enhance the design capabilities of the domestic defence industry through collaboration with academia and research institutions.

The DPSUs involved in this indigenisation effort include Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), BEML Limited, India Optel Limited (IOL), Mazagon Dock Shipbuilders Limited (MDL), Goa Shipyard Limited (GSL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), and Hindustan Shipyard Limited (HSL). These DPSUs have started issuing Expressions of Interest (EOIs) and Requests for Proposal (RFPs) on their respective websites, with links available on the Srijan Portal Dashboard. The initiative encourages participation from industry, MSMEs, and start-ups.

Previously, four PILs comprising 4,666 items were notified, with 2,972 items indigenised, achieving an import substitution value of Rs 3,400 crore. The five PILs for DPSUs are in addition to the five positive indigenisation lists of 509 items notified by the Department of Military Affairs (DMA), which include complex systems, sensors, weapons, and ammunition.

As of June 2024, over 36,000 defence items were offered for indigenisation by DPSUs and SHQs, with more than 12,300 items indigenised in the last three years. Consequently, DPSUs have placed orders worth Rs 7,572 crore on domestic vendors.