Third Positive Indigenisation List for DPSUs Approved by Defence Minister

Defence Industry

New Delhi: Defence Minister Rajnath Singh on August 28, 2022 approved the third Positive Indigenisation List (PIL) of 780 strategically important Line Replacement Units (LRUs), sub-systems and components with a timeline beyond which they will only be procured from the domestic industry. This list is different from the three PILs announced for the armed forces. It is in line with the effort to promote self-reliance in defence manufacturing and minimise imports by the Defence Public Sector Undertakings (DPSUs).

According to the ministry statement, “This list is in continuation to the two PILs of LRUs, sub-systems, assemblies, sub-assemblies and components that were published in December 2021 and March 2022. These lists contain 2,500 items which are already indigenised and 458 (351+107) items which will be indigenised within the given timelines”.  It stated that so far, 167 items (1st PIL -163, 2nd PIL – 4) out of 458 have been indigenised.

The Ministry explained that indigenisation of these items will be taken up through different routes under ‘Make’ category of procurement procedure. ‘Make’ category aims to achieve self-reliance by involving greater participation of the Indian industry and projects involving design and development of equipment, systems, major platforms or upgrades thereof by the industry can be taken up under this category. Defence Ministry has set specific timelines for import ban of the items, spanning a period from December 2023 to December 2028.

“The indigenous development of these LRUs, sub-systems and components will bolster the economy and reduce the import dependence of DPSUs,” the statement said. It will also help to harness the design capabilities of domestic defence industry and position India as a design leader in these technologies. The DPSUs will soon float Expression of Interest (EoIs) and Request for Proposal (RFPs) in line with this, the statement added.