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Home National Defence

To boost ‘Make in India’, Govt mandates purchase of 26 military equipment only from domestic firms

The reform measures announced by Sitharaman included making separate budgetary outlay to procure Indian-made military hardware, increasing FDI limit from 49 per cent to 74 per cent under the automatic route and generating a year-wise negative list of weapons whose import will not be allowed.

by Navjeevan Express
6 years ago
in Defence, Gujarat, National
Reading Time: 2 mins read
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To boost ‘Make in India’, Govt mandates purchase of 26 military equipment only from domestic firms
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NE NEWS SERVICE

NEW DELHI, MAY 20

The Defence Ministry on Wednesday issued directives providing for procurement of 26 spares and equipment for military use only from domestic suppliers in sync with the government’s focus on encouraging indigenous defence manufacturing, officials said.

MoD approves procurement of 26 defence items only from local suppliers to boost ‘Make in India’ https://t.co/0N2k8wArR6 @DefenceMinIndia @rajnathsingh @IAF_MCC @adgpi @drajaykumar_ias @indiannavy @PIB_India @DRDO_India @MoHFW_INDIA @HQ_DG_NCC @DefProdnIndia

— A. Bharat Bhushan Babu (@SpokespersonMoD) May 20, 2020

The move came days after Finance Minister Nirmala Sitharaman unveiled a series of reform measures to promote the domestic defence industry and cut India’s reliance on imported weapons and military platforms.

All the items identified for procurement from domestic defence manufacturers are used in shipbuilding. So far, the Defence Ministry has notified 127 items where purchase preference is given to local suppliers.

Feel the Pride of the Air Warriors in this breathtaking video courtesy the Indian Air Force. Salute to the spirit of our Air Warriors! "May the IAF always touch the Sky with Glory!"@IAF_MCC @proshillong @SpokespersonMoD pic.twitter.com/dYWwUaWvvF

— PRO LEH (@prodefleh) May 19, 2020

“In order to further encourage procurement from local suppliers, 26 items out of 127 already notified, have now been notified under clause 3(a) of the Public Procurement (Preference to Make in India) Order 2017,” the Defence Ministry said in a statement.

#NationalCadetCorps Day 43 of #ExNCCYogdan in #Gujarat Cadets of #34GujBn being hailed as #CoronaWarriors at Chithoda police station.Felicitated for their hard work during lockdown #MoDAgainstCorona @SpokespersonMoD @HQ_DG_NCC @PIBAhmedabad @drajaykumar_ias @DDNewsGujarati pic.twitter.com/W3N9pmqaNM

— PRO Defence Gujarat (@DefencePRO_Guj) May 20, 2020

“Henceforth, procuring entities will procure these items only from local suppliers, irrespective of purchase value, provided that the local suppliers meet the minimum local content (MLC) as prescribed for each item,” it said.

#IndianCoastGuard #Okha food packets distributed to the needy. Day 41 @SpokespersonMoD @IndiaCoastGuard https://t.co/mbj2ndDNYs pic.twitter.com/AXzJ2ii5Is

— PRO Defence Gujarat (@DefencePRO_Guj) May 20, 2020

The local content prescribed for the 26 items is in the range of 40 percent to 60 percent.

The reform measures announced by Sitharaman included making separate budgetary outlay to procure Indian-made military hardware, increasing FDI limit from 49 per cent to 74 per cent under the automatic route and generating a year-wise negative list of weapons whose import will not be allowed.

Lt Gen CP Mohanty,
GOC-in-C, Southern Comd visited #CDM & was briefed about trg & adm infra created to impart training to tri-services offrs. He also e-released 100th edition of Def Mgt Journal-Dur Drishti & CDM Annual News Letter 2019-20 -Sameeksha @adgpi@indiannavy @IAF_MCC pic.twitter.com/iXAaMWRu6k

— HQ IDS (@HQ_IDS_India) May 20, 2020

India is one of the most lucrative markets for global defence giants as it figured among the top three importers of military hardware in the world for the last eight years.

According to estimates, the Indian armed forces are projected to spend around US $130 billion in capital procurement in the next five years.

#NationalCadetCorps Day 42 of #ExNCCYogdan in #Gujarat Cadets were felicitated 4 continued dedicated support to civil admin by SP #Valsad @collectorvalsad & CO Lt Cdr Vishal Nair #MoDAgainstCorona @SpokespersonMoD @HQ_DG_NCC @PIBAhmedabad @drajaykumar_ias @DDNewsGujarati pic.twitter.com/F1sE2YzXl9

— PRO Defence Gujarat (@DefencePRO_Guj) May 20, 2020

Experts said increasing the existing Foreign Direct Investment (FDI) cap to 74 per cent will encourage global players like Lockheed Martin, Boeing, Airbus and Dassault Aviation to set up manufacturing hubs in India and bring niche technology without hesitation as the firms will have majority stakes in their Indian subsidiaries.

Ex #Yogdan 27 Guj Bn, 8 Guj NU Jamnagar continued its non stop deployment on 41st day also in support of police . 17 cadets 3 ANOs and 5 PI were deployed at 8 locations in the town. Jamnagar was the first town where deployment started on 8 Apr in Gujarat. pic.twitter.com/7gak6mfMy7

— National Cadet Corps (@HQ_DG_NCC) May 19, 2020

Tags: 26 itemsclause 3(a) of the Public Procurement (Preference to Make in India) Order 2017domestic defence manufacturersFinance Minister Nirmala Sitharamanin the range of 40 per cent to 60 per cent.minimum local content (MLC)the Defence Ministry
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