This “4e The positive indigenization list” will include Rs 715 crore of high-end materials and spare parts, the import of which will only be allowed until a specified date. When the import deadline of each expires, it will need to be procured from Indian industry
By Vikas Gupta
Trade standard, 15eMay 23
In order to promote “aatmanirbharta(self-sufficiency) in defense armaments and equipment, and minimizing imports by Defense Public Sector Enterprises (DPSU), the Ministry of Defense (MoD) on Sunday promulgated a list of 928 spare parts and components of strategic importance that would face restrictions on their importation.
This so-called “4eThe Positive Indigenization List (PIL)” will include Rs 715 crore of high-end materials and spare parts which will only be allowed to be imported until a specified date for each. After the expiration of the import deadline of each, it will have to be procured from Indian industry.
This fourth PIL follows three previous PILs, which restricted the importation of a range of Line Replacement Units (LRUs), subsystems, assemblies, spare parts and defense system components .
1st The LIP, comprising 101 articles, was promulgated in August 2020. The 2n/a The LIP comprising 108 articles was promulgated in May 2021. The 3rd The LIP, composed of 101 articles, was promulgated in April 2022.
The Department of Defense also notified three PILs for DPSUs, comprising 3,738 Major Line Replacement Units (LRUs), subsystems, assemblies, spares and components, each with an embargo on their importation from deadlines defined.
In addition, over 26,000 defense articles have been uploaded to the MoD’s SRIJAN Defense Portal and offered to industry for indigenization. So far, 7,031 items have already been indigenized, destined for domestic and global markets.
According to data from the Ministry of Defense, defense imports fell from 36.7% of capital expenditure in 2018-2019 to 46% of capital expenditure through December 2022.
Some 2,500 items have already been indigenized from previous lists and 1,238 items are to be indigenized within three specified time frames. Of these 1,238 articles, 310 articles have been indigenized so far.
It was expected that the DPSUs would undertake the indigenization of these items through different avenues under the “Do” category; in addition to in-house development through the capabilities of medium, small and micro enterprises (MSMEs) which are part of Indian private industry.
The implementation of import bans is expected to boost economic growth, increase defense investment and reduce the dependence of DPSUs on imports. It should also increase the design capabilities of the national defense industry by involving universities and research institutes.
DPSUs have been instructed to initiate the purchase of these notified items. Details are available on the SRIJAN portal (https://srijandefence.gov.in/).
