Comments
The much-awaited Defence Procurement Procedure 2016 was released online in time for the Defence Expo inauguration on Monday in Goa.
In DPP 2016, the Ministry of Defence has introduced a new category for acquisition — Indigenously Designed Developed and Manufactured (IDDM) — under which indigenously designed, developed and manufactured equipment must have at least 60 per cent of the components locally sourced if the design is not Indian. If the design is Indian, at least 40 per cent needs to be locally sourced.
The IDDM category will be the most preferred acquisition category, according to the Ministry of Defence.
“We are working on the IDDM direction already in this market as we are here for the long erm. We have already set up an India design centre and are open to customising our designs according to Indian needs,” Sunil Raina, Managing Director, Rockwell Collins India, told BusinessLine .
“The IDDM and Buy and Make Indian categories will help global OEMs and Indian companies forge partnership for co-development and co-production. The integration of Indian companies in the global supply chain will help the establishment of defence manufacturing,” said Pierre de Bausset, President, Airbus India and Chairman, FICCI — Make in India on Defence and Aerospace. The revised policy sought to give more prominence to defence firms operating in the MSME segment. Now, government-funded defence projects with estimated development cost of less than ₹10 crore will be reserved for MSMEs.
The new DPP was finalised during a meeting of the Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar, on March 21. “We hope the new DPP follows a pragmatic approach, allowing all stakeholders to work in unison with a degree of flexibility to ensure cost-effective and timely achievements, aiming to boost indigenous defence procurement. We have plans to ramp up our supply chain in India and build a sustainable ecosystem of partners,” said Antoine Caput, Vice-President and Country Director - India, Thales.
Under DPP 2016, the offset level has been raised to ₹2,000 crore, from ₹300 crore currently. This is because the Centre believes that the Indian industry is not in a position to absorb large-scale offsets.
The new policy seeks to fast-track defence purchases even during peace time.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.