New Delhi: Giving a clear advantage to the state-run Hindustan Aeronautics Limited (HAL), the defence ministry Thursday released its third negative import list — which includes the Naval Utility Helicopter, a programme that has been in limbo for a long time.
The list, officially known as the positive indigenisation list, details 101 items including light tanks — which Russia had offered — that will be barred for import progressively from December 2022 to December 2027.
However, the NUH was the most significant inclusion, because the programme was being pursued under a strategic partnership model, whereby a foreign original equipment manufacturer (OEM) would tie up with an Indian private company.
While Airbus was the frontrunner to win the mega contract, HAL also responded to the tender, putting the whole process on hold since the state-run firm wanted a way in — something that’s not allowed under the strategic partnership model.
ThePrint had reported in 2020 that this project was going to be a big challenge for the Modi government as it moved ahead with its Atmanirbhar programme.
Indian private companies were against HAL’s inclusion in the programme, and the Navy, too, had its reservations.
Sources explained that the cut-off period for NUH import is December 2023, before which the Navy could sign a contract involving a foreign manufacturer. However, they added that if HAL is able to prove its NUH, then the Navy will go for the indigenous product.
The sources also pointed out that even under a strategic partnership, the helicopter would have been manufactured in India through a tie-up between a foreign OEM and an Indian private company.
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Dangers of importing defence systems
Speaking at the release of the third list, Defence Minister Rajnath Singh said that more than Rs 2,10,000 crore’s worth of orders would be placed with Indian industry in the next five to seven years.
He called for the indigenous development of defence equipment and platform technologies, stressing that the import of systems with foreign software codes can prove to be dangerous for the security apparatus, as it opens a window of vulnerability.
Emphasising the need to focus more on indigenisation, he said, “Today, the scope of defence is not limited to borders only. Anyone can now break into the security system of a country with the help of different communication methods. No matter how strong the system is, if it is linked to another country, there is a possibility of a security breach.”
“Earlier, defence equipment, such as tanks and helicopters, was mainly mechanical in nature. It was not possible to control them. But newer defence systems and platforms are electronic and software-intensive. They can be controlled or subverted from anywhere,” he added.
Singh also said that despite hurdles, India had always performed exceptionally well on its own in areas such as nuclear and space technology.
He added that India would soon transform into a global manufacturing hub that caters to domestic requirements, besides being a dominant force in the international market.
He described the three lists as a self-imposed vow that can pave the way for a strong and self-reliant “New India”.
Industry welcomes third list
The 37 items that will be barred for import from December this year include counter-drone systems for both hard and soft kills — to physically destroy drones and to jam their electronics and communications, respectively.
Starting from December 2023, India will not import any drone or unmanned aerial vehicle (UAV) that has a range of 100 km at an altitude of 4,000 metres, or loitering munitions with a range of 150 km.
The cut-off date for bigger items such as the mounted artillery gun system and lightweight tanks kicks in from December 2025.
Welcoming the move, S.P. Shukla, president of the Society of Indian Defence Manufacturers (SIDM), told reporters, “The third positive indigenisation list comes at a strategically important time. Given the current geopolitical scenario, the importance of being self-reliant in defence production is more apparent than ever, and industry is well poised to manufacture the 101 items indigenously and enhance the operational readiness of our forces. We welcome this reform with enthusiasm.”
Jayant Patil, executive vice president, defence and aerospace at L&T, said that the new list provides the domestic defence industry with a shot in the arm to realise the ‘Atmanirbhar’ vision.
This third list follows the first (101 items) and second lists (108) that were promulgated on 21 August, 2020 and 31 May, 2021, respectively.
The defence ministry in a statement said the list had been prepared after in-depth consultations with all stakeholders, such as the Defence Research and Development Organisation (DRDO), the Department of Defence Production (DDP), service headquarters (SHQs) and private industry.
Defence Minister Singh said that, as with the previous lists, the time limits given in the third list will also be adhered to.
He further said that the Ministry of Defence and the service headquarters would take all necessary steps — including the handholding of industry — reiterating the government’s endeavour to create an ecosystem that ensures self-reliance in defence manufacturing and encourages exports.
(Edited by Rohan Manoj)
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