Make in India: India reserves 26 items only for local defence companies


Defence News India: In order to make the country self-dependent on defence production, Prime Minister Narendra Modi’s government Thursday issued new guidelines, reserving more than two dozen items to be sourced only from local defence companies.

In 2017, the Narendra Modi government issued the Public Procurement (Preference to ‘Make in India’) Order 2017 to promote manufacturing and production of goods and services in India.

Under the order, Department of Defence Production (DDP), Ministry of Defence has so far notified 127 items where purchase preference is given to local suppliers as per PPP-MII 2017.

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On Thursday (May 21, 2020) the government notified 26 of these 127 items under clause 3(a) of the public procurement order of 2017, which makes it mandatory for the procuring entities to source them only from Indian suppliers, whereas in the earlier scheme of things it was not mandatory and only preference was to be given to Indian suppliers.

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Make in India in Defence

After entry of these 26 items in the clause 3(A) of the Procurement Order, the procuring entities will now procure these 26 items only from local suppliers, irrespective of the purchase value.

However, the local suppliers will have to meet the minimum local content (MLC) norms prescribed for each item.

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