Ministry of Defence Announces Procurement Procedure

The ministry of defence on Friday announced the Defence Procurement Procedure (DPP) and Defence Acquisition Procedure (DAP 2020), new policy initiatives to boost indigenous defence capability and reduction on imports reliance with a major focus on ‘Aatmanirbhar Bharat’ and ‘Make in India’.

The statement added that DAP-2020 provides the highest preference to the ‘Buy Indian (IDDM)’ category of acquisition and ‘Buy Global’ is only permitted in exceptional situations with specific approval of the Defence Acquisition Council (DAC) and defence minister.

Meanwhile, capital procurement of defence equipment is undertaken from various domestic as well as foreign vendors, based on threat perception, operational challenges and technological changes so as to keep the Armed Forces in a state of readiness and to meet the entire spectrum of security challenges.

To achieve self-reliance in the defence sector and to provide impetus to the design, development and manufacture of defence equipment or platforms in India, the government have undertaken a few initiatives or policies such as –

A new category of Buy (Global- Manufacture in India) will able ab-initio indigenisation of spares and encourage Foreign OEMs to set up ‘manufacturing or maintenance entities’ through its subsidiary in India.

Two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu will be established.

Defence Research & Development (R&D) for industry, start-ups and academia with 25 per cent of the defence R&D budget earmarked to promote the development of defence technology in the country will be opened.

Allocation of the Defence Budget the military modernisation for procurement from domestic sources will be increased.

In line with the Government of India’s initiative of Aatmanirbhar Bharat, MoD earmarked funds amounting to Rs 84,598 Cr (68 per cent of the total Capital Acquisition Budget) for the domestic capital procurement in 2022-23.

The information is notified by MoS Ajay Bhatt in a written reply to Shrimati Ranjanben Dhananjay Bhatt in Lok Sabha today.