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.
- Simply put: Raised offset threshold, other features of new defence procurement norms
- Defence postures
- Defence procurement: Offset threshold raised from Rs 300 cr to Rs 2k cr, says Parrikar
- To prevent corruption, smaller defence deals brought under ‘integrity pact’
- Explained: New in new defence procurement procedure
- A new Defence Procurement Procedure by March, says Manohar Parrikar
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.
- Shah Rukh Khan On Raees Clash With Kaabil: It’s Impossible To Have A Solo Release In India
- US-President Elect Donald Trump Named TIME’s Person Of The Year 2016
- O. Panneerselvam: 10 Things You Need To Know
- PM Narendra Modi Slams Opposition For Not Letting Parliament Function
- Nawazuddin Siddiqui On Working In Raees: Was Nervous To Shoot With Shah Rukh Khan
- Bathinda Dancer Murder: Video Showing Accused Opening Fire At Marriage
- 5 Lesser Known Facts About Sasikala Natarajan
- Congress Leader Shashi Tharoor’s Delhi Home Burgled: Here’s What Happened
- Reserve Bank Of India Keeps Repo Rate Unchanged Post Demonetisation
- Bigg Boss 10 Dec 06 Review: Swami Om Pees In Kitchen
- Lenovo k6 Power Video Review
- Bigg Boss 10 December 5 Review: Manveer Calls Swami Om ‘kachdaa’
- PM Narendra Modi Declared Winner Of TIME Magazine’s Person Of The Year – Reader’s Poll
- Paneerselvam sworn in as new Chief Minister of Tamil Nadu
- Tamil Nadu CM J Jayalalithaa Passes Away After Suffering Cardiac Arrest
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.