New Defence Procurement Policy promises to make defense market more lucrative

The new DPP has stressed reducing delays in procurements by eliminating repetitive procedures.

Written by Pranav Kulkarni | New Delhi | Published:January 12, 2016 3:44 pm
Manohar parrikar, defence procurement policy, dpp Defence Minister Manohar Parrikar stressed that the new policy will ensure the modernisation of defence forces remains unaffected .

The Defence Acquisition Council (DAC) on Monday cleared new clauses to the proposed Defence Procurement Policy (DPP).

The most important takeaway is the increase in the offset baseline from Rs 300 crore to Rs 2,000 crore. However, even beyond that, the policy promises to make the defense market more lucrative for Indian industry.

Defence Minister Manohar Parrikar stressed that the new policy will ensure the modernisation of defence forces remains unaffected — least due to procedural intricacies. “Every word (of the DPP) had become a gate” to stall projects during the previous government, he alleged.

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The new DPP has stressed reducing delays in procurements by eliminating repetitive procedures. It has also introduced certain clauses which allow procurements in case of single vendor situations with “proper justifications”. Interestingly, the government is also “ready” to pay up to 10 per cent extra for those products which are better than others. This will ensure that the armed forces — the end users– will benefit.

The DPP will also have a new category of Indigenously Designed Developed and Manufactured (IDMM) as the most preferred category for procurements. The three sub procedures under the “Make” category aim to boost domestic private and small scale industry.

Decisions on strategic partnerships, blacklisting and middlemen are still awaited though.

While the changes proposed will be implemented only after about two months, the practicalities/shortcomings of the new DPP will be visible only once it is implemented and contracts are executed under these guidelines. Industry, which was eagerly awaiting the new guidelines is so far welcoming of the changes. “The new category of Buy Indigenously Designed, Developed and Manufactured Equipment is ingenious. This changes everything. The impact will be far-reaching and will have cascading effect. This will change India from being a destination for low-cost manufacturing, to being a starting place for cutting-edge innovation; from being a consumer of out-dated equipment to being a producer of trail-blazing technology; from being the world’s largest importer to being a leader in export of defence equipment,” said Ashok Atluri, Managing Director, Zen Technologies.

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  1. A
    Arun
    Jan 12, 2016 at 3:10 pm
    New Defence Procurement Policy will surely be lucrative for the Ambani and Ahani.
    Reply
    1. S
      SANJIV
      Jan 12, 2016 at 10:57 am
      ACTUALLY OUR FEKKU DOES NOT NEED AN EXTERNAL AFFAIRS MINISTER ! NOR A DEFENCE MINISTER TO SIGN DEFENCE DEALS WITH FOREIGN COUNTRIES ! THIS CHAIWALLAH IS ALL-KNOWING ! THE DEFENCE MINISTER MANOHAR PARRIKAR WAS IN THE FISH MARKET IN GOA WHEN MODI WAS ORDERING OUT-DATED RAFALE FIGHTERS IN FRANCE ! AS USUAL FOREIGN MINISTER SUSHMA ( WHO HAD COMMITTED THE SIN OF GETTING THE BLESSINGS OF BAL THACKERAY IN HIS DEATH BED TO BE THE PM CANDIDATE OF BJP ! )WAS NOT EVEN INFORMED OF HIS 100TH FOREIGN VISIT ! GOOD THAT MODI IS SAVING A COMPANY WHICH IS SHUTTING DOWN DUE TO POOR QUALITY PRODUCTS ! RAFALE FIGHTERS INDIA IS BUYING CAN'T MATCH CHINESE FIGHTERS: RUSSIAN ENVOY .NDTV/INDIA-NEWS/RAFALE-FIGHTERS-INDIA’S-BUYING-CANT-MATCH-CHINESE-FIGHTERS-RUSSIAN-ENVOY-681135 INDIA | WRITTEN BY SUDHI RANJAN SEN | UPDATED: OCTOBER 18, 2014 23:06 IST NEW DELHI: THE FRENCH RAFALE FIGHTER AIRCRAFT THAT INDIA IS PLANNING TO BUY, IN WHAT IS BEING BILLED AS THE LARGEST DEFENCE PURCHASE BY THE COUNTRY - "WILL BE SWATTED LIKE MOSQUITOS IN AN AUGUST NIGHT," SAYS RUSSIAN AMBADOR TO INDIA ALEXANDER KADAKIN. MR KADADIN ALSO CLAIMED THAT SUKHOI-27 - AIRCRAFT MANUFACTURED IN RUSSIA THAT ARE SUPPLIED TO CHINA'S PEOPLE'S LIBERATION ARMY (AIR FORCE )- ARE FAR MORE CAPABLE AND ADVANCED THAN THE RAFALE FIGHTERS ! ..
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