DPP 2013 comes into force

The Ministry of Defence has promulgated the Defence Procurement Procedure 2013 on June 1. The new procedure aims at balancing the competing requirements of expediting capital procurement, developing a robust indigenous defence sector and conforming to the highest standards of transparency, probity and public accountability, while laying a strong emphasis on promoting indigenisation and creating a level playing field for the Indian industry.

Defence Minister A.K. Antony has expressed hope that the defence industry as well as the procurement agencies will find the DPP-2013 to be a ‘progressive step’ aimed at giving impetus to indigenisation, creating level playing field between the pri- vate and public sector and expediting the procurement process as a whole.

A higher preference has now been accorded explicitly to the ‘Buy (Indian)’, ‘Buy and Make (Indian)’ and ‘Make’ categorisation, besides bringing further clarity in the definition of the ‘indigenous content’ and simplifying the ‘Buy and Make (Indian)’ process. Besides this, the validity of the acceptance of necessity (AoN) has been reduced from two years to one year with a stipulation to freeze the service qualitative requirements (SQRs) before the accord of the AoN. A higher delegation of financial powers to the Service Headquarters and the DPB has also been made. Together, these measures are expected to make the procurement procedure more efficient and reduce delays.

Other significant changes include incorporation of the new offset policy guidelines which were promulgated in August 2012 and revision of the chapter on shipbuilding which had been introduced in the DPP 2011. The Ministry has also undertaken the exercise of further simplification of the ‘Make’ procedures and revision of the fast track procedures which is likely to be completed in the near future.