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This is an archive article published on January 11, 2015

A new Defence Procurement Procedure by March, says Manohar Parrikar

Parrikar said his ministry will come out with a brand new "simplified and time-bound" defence procurement procedure (DPP) by March 2015 that will help smoothen defence procurement.

The Union Defence Minister Manohar Parrikar on Sunday said his ministry will come out with a brand new “simplified and time-bound” defence procurement procedure (DPP) by March 2015 that will help smoothen defence procurement.

Speaking at a seminar organised on defence on the first day of Vibrant Gujarat summit, Parrikar said he has been trying to “decode” the DPP 2013 since the last two months after assuming office in November 2014.

“There are no clear cut definitions. There is no clarity in defence procurement, especially when there is only one customer (the government),” he added.

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“We are in the process of modifying the existing DPP. In the next three months, possibly by March 2015, we should be be able of come out with a new DPP which should resolve the existing problems, the minister said on a day when firms like Bharat Forge and US-based FutureNet Group Inc inked defence and security partnerships with Gujarat government.

Bharat Forge will set up a Rs 600 crore unit for upgrade and overhaul of armoured vehicles in the state. The unit is expected to provide 2500 new jobs.

Meanwhile, a local Ahmedabad-based company —Abhyuday Techno Economic Consultants Pvt Ltd — announced to set up a mega defence equipment park in North Gujarat for re-engineering at the cost of Rs 176 crore. The unit promises to employ over 5000 persons.

US-based FutureNet Group Inc will invest Rs 600 crore for an unit that will deal in Guard Booths, Cable and Mobile Barrier Canopies. During the seminar, the officials also talked about the defence ministry setting up a separate defence export and promotion body.

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