New defence procurement policy to focus on indigenous production

The current Defence Procurement Procedure (DPP), by far, is the most remarkable framework as it gives more emphasis on indigenous equipment production

The Dollar Business Bureau

With an aim to facilitate Make in India in defence manufacturing, the government on Friday said it will soon unveil a new defence procurement procedure which will give more emphasis on indigenous equipment production. “The current Defence Procurement Procedure (DPP) is under amendment and is under the consideration of his (defence) ministry. The Defence Procurement Manual is under the process of internal vetting and is expected to be finalised by end June 2016,” Defence Minister Manohar Parrikar said while addressing the consultative committee in New Delhi. Earlier, the defence ministry had formed a committee to evolve a policy framework to suggest amendments required to remove bottlenecks in the procurement process. Since the launch of the first DPP in 2002, the government has, over the years, revised the policy framework based on feedback from the stakeholders, including user services, quality control and maintenance agencies, defence finance, administrative wing and industry. The current DPP, by far, is the most remarkable framework as it gives more emphasis on indigenous equipment production. However, over the last few decades, provisions have been introduced to facilitate participation of the private sector in defence production. During the discussion, Members of Parliament suggested that the government should give incentives under the Buy (Indian) and Buy & Make (Indian) categories. They also said that PSUs should be allowed to bid for Buy(Indian) category and that offsets should be in terms of overall requirements of users.

December 18, 2015 | 05:50pm IST

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The Dollar Business Bureau - Dec 18, 2015 12:00 IST

New defence procurement policy to focus on indigenous production

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