New Delhi. 31 May 2021. The month ended on an exciting note for Indian defence industry as the Minister fo defence has approved a proposal of the Department of Military Affairs, Ministry of Defence (MoD) announced the notification of the ‘Second Positive Indigenisation List’ of 108 items. This will give further boost to indigenisation with active participation of public and private sector for fulfilling the twin objectives of achieving self-reliance and promoting defence exports. All the 108 items will now be procured from indigenous sources as per provisions given in Defence Acquisition Procedure (DAP) 2020.
The second list (enclosed) lays special focus on weapons/systems which are currently under development/trials and are likely to translate into firm orders in the future. Like the first list, import substitution of ammunition which is a recurring requirement has been given special focus. Not only does the list recognise the potential of local defence industry, it will also invigorate impetus to domestic Research &Development by attracting fresh investment into technology and manufacturing capabilities.
The ‘Second Positive Indigenisation List’ comprises complex systems, sensors, simulator, weapons and ammunitions like Helicopters, Next Generation Corvettes, Air Borne Early Warning and Control (AEW&C) systems, Tank Engines, Medium Power Radar for Mountains, MRSAM Weapon Systems and many more such items to fulfil the requirements of Indian Armed Forces.This second list is planned to be implemented progressively with effect from December 2021 to December 2025.
This second list has been prepared by MoD after several rounds of consultations with government and private manufacturing industry confederations to assess future capabilities of Indian Industry which will be able to meet requirements of the Armed Forces. This list provides continuous impetus towards self-reliance in Defence.
The Defence industry can gainfully utilise this golden opportunity to build robust Research and Development facilities, capacities and capabilities to meet the futuristic requirements of the Armed Forces. This list also provides an excellent opportunity for ‘start-ups’ as also MSMEs which will get tremendous boost from this initiative.
Towards this, Ministry of Defence, Defence Research and Development Organisation (DRDO) and Service Head Quarters (SHQs) will take all necessary steps, including hand holding of the Industry, to ensure that the timelines mentioned in the ‘Second Positive Indigenisation List’ are met, thereby facilitating an environment for Indian Defence Manufacturers to create world class infrastructure, assist in Government’s ‘Make in India’ vision to make India self-reliant in defence and develop the capabilities for defence export in the near future.The Second Positive Indigenisation List will be hosted in the MoD website.
In August 2020, the ‘First Positive Indigenisation’ List comprising 101 items was notified, in pursuance of Government’s endeavor of ‘AtmaNirbhar Bharat Abhiyan’ and to boost indigenisation in the defence sector. At that time, it was also highlighted that more such equipment would be identified progressively to facilitate and encourage defence manufacturing in the country.