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- 20 Oct 2022
- ICICIdirect Research
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GOVERNMENT ANNOUNCES POSITIVE INDIGENISATION LIST OF 101 ITEMS IN DEFEXPO 2022
News:
The government has announced the fourth positive indigenisation list of 101 items during DefExpo 2022. This include highly complex defence equipments/systems, sensors, weapons and ammunitions, which will be procured from indigenous sources now. The major equipment included in this list are next generation frigates, fleet support ships for Navy, counter measure vessels, landing platform dock, infantry protected mobile vehicles, light armoured multipurpose vehicle, long range anti-ship missile (LRAshM), long range HALE unmanned aerial vehicle (UAV) and many complex equipments/components used in aircrafts, warships, submarines, etc.
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This fourth list is in addition to the three positive indigenisation lists of 310 complex defence systems announced by the government in the last two years. Mazagon Dock Shipbuilders (MDL) and Garden Reach Shipbuilders (GRSE) are expected to get contracts for next generation frigates while indenisation of support ships, vessels, landing platform dock should benefit all shipyards including Cochin Shipyard (CSL). We believe all defence companies including Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Bharat Dynamics (BDL), Data Patterns will benefit from other items like LRAshM, UAV and other equipments that will be used in aircraft, warships, submarines, missiles, etc. As per government estimates, more than Rs 1.75 lakh crore worth orders would be placed for these 101 items to Indian industry in the next five to 10 years.
Impact:
Positive.