Defence stocks rally as MoD puts 108 items on import ban list; BEL up 6 %

Shares of defence equipment manufacturers ruled at the bourses on Tuesday, a day after the Ministry of Defence (MoD) announced a "Positive Indigenisation List" of 108 items of defence equipment that must be compulsorily procured from indigenous sources. 

Individually, Bharat Electronics jumped 5.6 per cent on the BSE, followed by Hindustan Aeronautics and Garden Reach Shipbuilders that soared 5 per cent each. Bharat Dynamics, Astra Microwave Products, BEML, Bharat Forge, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders advanced between 1 per cent and 4.4 per cent. In comparison, the benchmark S&P BSE Sensex was quoting at 52,095 levels, up 0.3 per cent, at 9:55 AM.

The MoD, on Monday, announced a list of 108 items of defence equipment that must be compulsorily procured from indigenous sources according to provisions in the Defence Acquisition Procedure 2020. The list includes 49 items that will be banned for import after Decem­ber this year; 21 that cannot be imp­orted after end-2022; 17 that will be banned for import after Decem­ber 2023; 13 after December 2024; and eight that will have to be proc­u­red indigenously after December 2025.

This list supplements an earlier import embargo on 101 defence items announced last August.

"The list lays special focus on weapons/systems which are currently under development /trials (in India) and are likely to translate into firm orders in the future. Like the first list, import substitution of ammunition, which is a recurring requirement, has been given special focus," stated an MoD release on Monday. READ MORE ABOUT IT HERE

Starting this December, the military will rely exclusively on indigenous vendors for defence equipment, including land-based, single-engine, light he­licopters, next-generation corve­ttes, mission systems for airborne early warning and control system, helicopter launched anti-tank guided missile, warship-grade steel and armoured or mine-protected infantry vehicles, it added.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel