Ahead of the Annual Budget for FY25, in a significant stride towards achieving self-reliance in defence, the Ministry of Defence (MoD) has announced the fifth Positive Indigenisation List (PIL) for Defence Public Sector Undertakings (DPSUs).
This list, comprising 346 strategically-important items, aims to minimize imports and boost domestic production. The Department of Defence Production (DDP) revealed that the items on this list have an import substitution value of Rs 1,048 crore and will be sourced exclusively from Indian industries following the indigenisation timelines available on the Srijan portal.
Launched in 2020, the SRIJAN portal is a platform where DPSUs and Service Headquarters (SHQs) offer defence items for indigenisation to industries, including Micro, Small, and Medium Enterprises (MSMEs) and start-ups. This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Aatmanirbhar Bharat’ (self-reliant India) and is spearheaded by Defence Minister Rajnath Singh to promote self-reliance in defence production.
Indigenisation Strategy and Impact
The DPSUs will indigenise the items listed in the fifth PIL through various methods, including the ‘Make’ procedure or in-house development with industry participation. This approach not only reduces import dependency but also stimulates economic growth by attracting investment in the defence sector. Additionally, it enhances the design capabilities of the domestic defence industry through collaboration with academia and research institutions.
The major DPSUs involved in this initiative 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 organisations have already begun issuing Expressions of Interest (EOIs) and Requests for Proposal (RFPs) on their respective websites, with links available on the Srijan Portal Dashboard. MSMEs, start-ups, and other industries are encouraged to participate actively.
Achievements and Previous Lists
The fifth PIL builds on the success of the previous four lists, which comprised 4,666 items. Out of these, 2,972 items with an import substitution value of Rs 3,400 crore have already been indigenised. These lists for DPSUs are supplementary to the five positive indigenisation lists of 509 items issued by the Department of Military Affairs (DMA), covering highly complex systems, sensors, weapons, and ammunition.
Key Achievements:
Over 12,300 items indigenised in the last three years: This milestone highlights the remarkable progress made by the DPSUs and SHQs in promoting domestic manufacturing.
DPSUs placed orders worth Rs 7,572 crore on domestic vendors: This substantial investment underscores the government’s commitment to supporting Indian industries and reducing reliance on imports.
Cumulative Indigenisation: Till June 2024, more than 36,000 defence items were offered for indigenisation, with over 12,300 successfully indigenised.
How the Fifth List Differs from Previous Lists
The fifth Positive Indigenisation List is distinguished by its focus on strategically important items such as Line Replacement Units, systems, subsystems, assemblies, sub-assemblies, spares, components, and raw materials. Unlike the previous lists, which included a broader range of items, this list targets critical components that play a pivotal role in defence readiness and operational efficiency.
Moreover, the fifth list reflects a refined strategy for indigenisation, leveraging the experience and insights gained from the earlier lists. This strategic focus aims to streamline the indigenisation process and accelerate the transition from imported to domestically produced defence equipment.