โ‚น70,221 crore reserved in defence budget for domestic procurement: Rajnath Singh


The Defence Ministry will soon issue a second negative list of items which can only be procured locally by the Services.

About โ‚น70,000 crore of the capital allocation of โ‚น1.35 lakh crore in the defence budget will be reserved for domestic procurements, Defence Minister Rajnath Singh said on Monday while stating the Ministry will soon issue a second negative list of items which can only be procured locally by the Services.

โ€œMy Ministry has planned to invest, about 63% of the outlay for 2021-22 on domestic procurement, i.e. about โ‚น70,221 crore for domestic defence procurement during for 2021-22,โ€ Mr. Singh said speaking at a webinar organised by Depart of Defence Production and Society of Indian Defence Manufacturers.

Speaking of the separate allocation for domestic procurement, Prime Minister Narendra Modi in his address urged the private sector to come forward in manufacturing as well as in design and development, showcasing India’s glory worldwide.

In the budgetary allocation for 2021-22, the capital allocation for defence saw an increase of โ‚น21,326 crore or 18.75% compared to Budget Estimates (BE) of last year. The total allocation for defence in the Union budget at โ‚น4.78 lakh crore including defence pensions which stood at โ‚น1.16 lakh crore. Last year, for the first time, the government introduced a separate allocation for domestic procurement within the defence budget and had reserved โ‚น52,000 crore for 2020-21.

As part of a series of efforts to streamline defence procurement, Mr. Singh said the Ministry is also working on bringing down the delays in timelines of capital acquisition. โ€œWe will make efforts to complete the defence acquisition within 2 years, instead of the existing 3-4 years being taken on the average,โ€ he said.

Last year, Defence Ministry had notified a list of 101 items on the negative import list and Mr. Singh said they intend to notify the next list of items and request Secretary Department of Military Affairs (DMA) that they should also consider including certain spares currently being procured from outside so that could also be indigenized.

โ€œThe embargo on imports is planned to be progressively implemented between 2020 to 2024. All necessary steps would be taken to ensure that timelines for production of equipment as per the negative import list are met,โ€ he stated.

Mr. Modi termed the negative list for imports as a positive list in the language of self-reliance. It is a positive list on the strength of which our own manufacturing capacity is going to increase, he stated. Stating that it is the positive list which is going to reduce dependence on foreign countries for defence needs, Mr. Modi said this is a positive list, because of which products made in India are guaranteed to be sold in India.

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