4th Positive Indigenisation List (PIL) for DPSUs

May 15, 2023

The Defence Ministry has recently approved the 4th Positive Indigenisation List (PIL), marking another significant step towards reducing import dependence and strengthening the country’s indigenous manufacturing capabilities.

The 4th Positive Indigenisation List

The Defence Ministry’s approval of the 4th Positive Indigenisation List (PIL) highlights the government’s commitment to enhancing self-reliance in defence manufacturing. This list encompasses a total of 928 strategically-important Line Replacement Units (LRUs), sub-systems, spares, and components. The combined import substitution value of these items amounts to an impressive ₹715 crore.

Procurement from Indian Industry

To promote domestic production and reduce reliance on imports, the Defence Ministry has mandated that the items included in the PIL will only be procured from the Indian Industry. This move not only strengthens indigenous manufacturing but also supports the growth of the domestic defence sector.

Srijan Portal Dashboard: A Gateway for Expression of Interest (EoIs) and Request for Proposals (RFPs)

To facilitate seamless communication and engagement, the Defence Ministry has introduced the Srijan portal dashboard. This platform serves as a central hub where interested parties from the Indian Industry can find Expression of Interest (EoIs) and submit Request for Proposals (RFPs) related to the items listed in the PIL. This transparent and efficient system streamlines the procurement process and encourages the active participation of domestic manufacturers.

Building upon Previous PILs

The 4th Positive Indigenisation List is a continuation of the previous three PILs that were published in December 2021, March 2022, and August 2022, respectively. Combined, these lists have already facilitated the indigenisation of 2,500 items. The current PIL aims to further indigenize 1,238 items within the specified timelines. This progressive approach showcases the steady growth of indigenous manufacturing capabilities in the defence sector.

Indigenization through the ‘Make’ Category

The Defence Public Sector Undertakings (DPSUs) will undertake the indigenization process through the ‘Make’ category, involving in-house development and collaboration with Micro, Small, and Medium Enterprises (MSMEs) and private Indian industries. This approach not only reduces import dependence but also augments the design capabilities of the domestic defence industry by engaging academia and research institutions.

Promoting Economic Growth and Defence Self-Sufficiency

The indigenization efforts through the Positive Indigenisation Lists serve a dual purpose: reducing the country’s import dependence on defence-related products and fostering economic growth. By encouraging indigenous manufacturing, the Defence Ministry stimulates investment in the defence sector, boosts employment opportunities, and strengthens India’s position as a self-sufficient nation in the field of defence production.

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