- 25 Mar 2022
- ICICIdirect Research
DEFENCE MINISTRY APPROVED ANOTHER LIST OF LINE REPLACEMENT UNITS
News: The Defence Ministry on Thursday approved another list that progressively bans imports of 107 sub-systems, components or 'line replacement units (LRUs) of major weapon systems and platforms between December 2022 and December 2028. Many of the LRUs identified are for Russian-origin hardware. Around 2,500 other components have already been indigenised.
Views: These LRUs will be indigenised in the coming years. The new list adds to a similar ban on 351 sub-systems and components, announced in December last year, which will have to be indigenised over the next three years to boost self-reliance in defence manufacturing and minimise imports by defence PSUs. Indigenisation of the 107 LRUs will be taken up by defence PSUs under ‘Make in India’ category by also involving the private industry. It will provide a huge boost to players like HAL, BDL, BEL, which offer a play in weapon systems and related platform.
Impact: Positive