26 Defence Items approved by Defence Ministry to boost Make in India

On May 20, 2020, the Ministry of Defence approved procurement of 26 defence items to boost “Make in India” initiative. This was done through the amendment of Public Procurement Order 2017.

Highlights

The Ministry of Defence has so far notified 127 items to under which the local suppliers will be given preference. Of these 127 items, these 26 items are more important.

Special preference to 26 items

The 26 items have been made important under Clause 3(a) of Public Procurement Order, 2017. According to the order, the procuring entities shall procure these items only from the local suppliers. Also, they shall procure the items irrespective of the purchase value. This has been done so that the local suppliers meet Minimum Local Content (MLC).

Some of the items are oil pumps (50% of MLC), doors (60%), high temperature Gasket (50%), etc.

Public Procurement Order

The Public Procurement Order was issued in 2017 to promote Make in India campaign. It promotes production and manufacturing of goods and services to improve income and employment.

Atma Nirbhar Bharat Abhiyan

The above steps are being done to boost economic growth of the country. The MSMEs of India has been badly hit due to the threat of COVID-19. Among all other initiatives, the GoI is to give importance to locally manufactured goods under the scheme. In order to achieve this, import of certain goods are to be banned in defence sector. By this, indigenization of the country is to be improved.

Month: Current Affairs - May, 2020