NATION

A big push to Atmanirbhar Bharat initiative: MoD to initiate an embargo on the import of 101 items to strengthen indigenisation of defence production

Jyoti B

Sep 02, 2020 11:40 GMT

In a major push towards Prime Minister Narendra Modi's clear call of 'Atmanirbhar Bharat', Defence Minister Rajnath Singh on Sunday announced that the Ministry of Defence (MoD) will initiate an embargo on the import of 101 items beyond given timeline in a bid to strengthen indigenisation of defence production.

Taking cue from that evocation, the Ministry of Defence has prepared a list of 101 items for which there would be an embargo on the import beyond the timeline indicated against them. This is a big step towards self-reliance in defence. #AtmanirbharBharat
— Rajnath Singh (@rajnathsingh) August 9, 2020

The list of 101 embargoed items includes some high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars and many other items.

The list also includes, wheeled Armoured Fighting Vehicles (AFVs) with indicative import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over Rs 5,000 crore. #AtmanirbharBharat
— Rajnath Singh (@rajnathsingh) August 9, 2020

Almost 260 schemes of such items were
contracted by the tri-Services at an approximate cost of Rs 3.5 lakh crore between April 2015 and August 2020. It is estimated that contracts worth almost Rs 4 lakh crore will be placed upon the domestic industry within the next 6 to 7 years according to MoD.

Almost 260 schemes of such items were contracted by the Tri-Services at an approximate cost of Rs 3.5 lakh crore between April 2015 and August 2020. It is estimated that contracts worth almost Rs 4 lakh crore will be placed upon the domestic industry within the next 6 to 7 years.
— Rajnath Singh (@rajnathsingh) August 9, 2020

The embargo on imports is planned to be progressively implemented between 2020 to 2024.

The embargo on imports is planned to be progressively implemented between 2020 to 2024. Our aim is to apprise the Indian defence industry about the anticipated requirements of the Armed Forces so that they are better prepared to realise the goal of indigenisation.
— Rajnath Singh (@rajnathsingh) August 9, 2020

One of the crucial responsibilities assigned by the government to the DMA, headed by the chief of defence staff General Bipin Rawat, is to promote the use of indigenous military equipment in the armed forces.

This decision will offer a great opportunity to the Indian defence industry to manufacture the items in the negative list by using their own design and development capabilities or adopting the technologies designed & developed by DRDO to meet the requirements of the Armed Forces.
— Rajnath Singh (@rajnathsingh) August 9, 2020

Singh said that the contracts worth almost Rs 4 lakh crore will be placed upon the domestic industry in the next six to seven years. He also said that more such equipment will be identified, in consultation with the stakeholders.

As per the list, there will be a near-immediate embargo on 70 products, another ten will be stretched out till 2021 before the embargo kicks in and finally, the balance 21 will be targeted between 2022 and 2025.

The list is prepared by MoD after several rounds of consultations with all stakeholders, including the Armed Forces, public & private industry to assess current and future capabilities of the Indian industry for manufacturing various ammunition & equipment within India.
— Rajnath Singh (@rajnathsingh) August 9, 2020

In a similar step, the MoD has also “bifurcated” the around Rs 1.18 lakh crore capital outlay for 2020-21 between domestic and foreign capital procurement routes. “A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year,” said Singh.

MoD has also bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year.
— Rajnath Singh (@rajnathsingh) August 9, 2020

defence