Govt unveils new defence procurement policy
AFTER a delay of over a year, the much-awaited new defence procurement policy was unveiled by the government on Monday with an aim to ensure transparency, fast-track acquisition process and give a push to the ‘Make in India’ initiative.
The Defence Procurement Procedure (DPP) 2016 announced by defence minister Manohar Parrikar, however, did not contain a key chapter on the proposed strategic partnership. Parrikar said it will take another 2-3 months for finalisation of this model.
To be applicable from April, the procurement policy lays the roadmap on how India, the world’s largest arms importer, will acquire defence equipment in the future.
The announcement was made at the inaugural ceremony of Defence Expo (Defexpo) 2016, the largest ever of its type to be hosted by India, at Quepem town, about 50 km from Panaji.
The new DPP has included a new category to acquire weapons — IDDM (Indigenously Designed, Developed and Manufactured). The IDDM will be the first preferred category of preference.
Parrikar said a review of the new DPP will be undertaken after six months. “I do not say that the document is foolproof. Let us take a review after six months. Nothing is perfect, but we are taking it to perfection,” he said.
He further said the DPP can push the agenda of ‘Make in India’ and India’s target of achieving defence industry network.
With the new DPP, it will be ensured that there is greater transparency and faster clearances, he said.
The DPP has been loaded online on the defence ministry’s website and would be made available in hard copy format after 15 days.
Parrikar said certain concerns of foreign companies which were expressed in the past would be addressed through this policy in the next three to four months.
The new policy also allows the Defence Acquisition Council to take a “fast-track” route to acquire weapons, something which was limited to only the armed forces till now.
In a bid to cut down on the time taken for acquisition process, it mandates that all AONs (Acceptance of Necessity) of a particular platform will be valid for only six months as against the 12month deadline now.
Defence minister Manohar Parrikar at Defexpo 2016