In 'Make in India' push, Modi govt scraps missile, chopper tenders worth over Rs 50,000 cr

In line with the Modi government's 'Make in India' push, the Defence Ministry on Friday decided to withdraw tenders related to the import of short-range surface-to-air missiles, and 14 helicopters. The Centre has started reviewing the import deals that fall under the 'Buy Global' category, which are fully acquired from foreign vendors.

In a bid to promote the Aatmanirbhar Bharat initiative, the Defence Ministry has called off or shelved a number of deals and is mulling to sign them in favour of Indian developers.

The import deals that have been closed or deferred include the Very Short Range Air Defence Systems, towed artillery guns, vertically launched surface-to-air missiles, shipborne unmanned aerial systems, additional P-8I surveillance aircraft along with the MiG-29 combat aircraft.

Besides this, the government has also cancelled the deal for acquiring General Purpose Machine Guns and a missile deal is also going to be scrutinised. The multi-billion-dollar Kamov-226 helicopter deal with Russia, as well as the Kamov-31 shipborne choppers and Klub class anti-ship missiles, are likely to be scrapped.

The Ministry, however, allowed the forces to go ahead with a deal to buy air-to-ground missiles from France and overhaul Russian helicopters.

Modi govt's Aatmanirbhar Bharat push in the Defence sector

The move comes in the backdrop of the recent Defence Production and Export Promotion Policy laid down by the government which aims at strengthening defence production within the country and further supporting exporting to foreign countries. The initiative came after Prime Minister Modi held a review meeting with Defence Minister Rajnath Singh and other officials including the then Chief of Defence Staff General Bipin Rawat, where it was felt that strong measures would have to be taken to ensure that the country moves firmly towards Aatmanirbhar Bharat in the defence sector.

Shortly after the meeting, a note to the three Services by an Additional Secretary-rank officer of the Ministry stated that all stakeholders must take an in-principle call that no import of defence items will be going forward. Also, all the capital and revenue procurement proposed or currently underway will be critically reviewed and it will be completed by January 15.

(With inputs from agency)