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.

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