MoD trims import list, bans 101 items

Embargo to be enforced in phases by 2024 | Rs4-lakh cr orders likely for domestic players

MoD trims import list, bans 101 items

The banned items comprise not just simple parts but also some high technology weapon systems.

Tribune News Service

New Delhi, August 9

The Ministry of Defence has come out with a list of 101 types of military equipment, weapons and ammunition which will be progressively barred from being imported starting December 2020.

The “Negative Import List” of 101 embargoed items comprises not just simple parts, but also some high technology weapon systems like artillery guns, assault rifles, warships, sonar systems, submarines, light transport aircraft, light combat helicopters (LCHs), radars and light combat aircraft.

‘Big Push for self-reliance, boost for Indian industry’

This is a big step towards self-reliance in defence. It also offers a great opportunity to the Indian industry to manufacture items on the ‘negative list’ by using its own capabilities or adopting the technologies designed by the DRDO. — Rajnath Singh, Defence Minister

Any item on the ‘negative list’ can now only be sourced from the domestic industry. Most of the items on the embargo list are already being produced by the public sector units or the private industry.

The MoD will place orders worth Rs 4 lakh crore with the domestic industry over the next 5-7 years by cutting down on these imports. For now, India is a top importer of weapons and equipment.

Defence Minister Rajnath Singh announced the policy on Sunday, saying that the embargo would be implemented in phases.

Among the big orders for the domestic industry will be submarines, which would come under the import embargo by December 2021. A contract for six of these would be worth about Rs 42,000 crore. The likely embargo date for LCA MK-1A is December 2020. An order of 123 of these for the IAF with an approximate cost of Rs 85,000 crore will now go to domestic players. The embargo on imports will be progressively implemented from 2020 to 2024.

The Department of Military Affairs (DMA) headed by the Chief of Defence Staff, General Bipin Rawat, prepared the list of 101 items. The Indian defence industry can either have its own design or adopt the technologies designed and developed by the Defence Research and Development Organisation.

The list was finalised by the MoD after several rounds of consultations with all stakeholders, including Army, Air Force, Navy, DRDO, Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board and the private industry. They assessed the current and future capabilities of the Indian industry for manufacturing.

Barred imports: Warships, submarines, LCA

The banned items comprise not just simple parts but also some high technology weapon systems like artillery guns, assault rifles, warships, sonar systems, submarines, light transport aircraft, light combat helicopters, radars and light combat aircraft.

Rs52k-cr budget for domestic purchase

The MoD has bifurcated the capital procurement budget for 2020-21 into domestic and foreign routes. A separate budget head has been created with an outlay of Rs 52,000 cr for domestic capital procurement.

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