The Ministry of Defence will introduce an import embargo on 101 weapon systems to boost self-reliance in defence production, said Defence Minister Rajnath Singh.
In a series of tweets on Sunday, Singh called the move as a big push towards the Atma Nirbhar Bharat initiative, further opening the opportunities for the Indian Defence Ministry to manufacture various ammunition and equipment mentioned in the list, using their own design and development capabilities, to meet the requirement of the armed Armed forces, and adopting the technologies developed by DRDO.
The Ministry of Defence is now ready for a big push to #AtmanirbharBharat initiative. MoD will introduce import embargo on 101 items beyond given timeline to boost indigenisation of defence production.— Rajnath Singh (@rajnathsingh) August 9, 2020
The MoD has prepared the Negative Import List after conducting several rounds of talks with the stakeholders including Indian Army, public and private industries, the Minister added.
"The list of 101 items include wheeled Armoured Fighting Vehicles (AFVs) with import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over ₹5,000 crore," the Minister added.
As per the announcement, the embargo will be planned progressively 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."
"Over 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," the Minister said. It is estimated that contracts worth almost ₹4 lakh crore will be placed upon the domestic industry within the next 6 to 7 years.
Of the total, items worth almost ₹1,30,000 crore each are expected for the Army and Air Force, whereas, items worth ₹1,40,000 crore are expected by the Navy.
The Ministry has also bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. For domestic capital procurement, a separate budget head has been created with an approximate allocation of ₹52,000 crore.