The final form of the Defence Acquisition Procedure (DAP)- 2020 was unveiled by Defence Minister Rajnath Singh on Monday. This follows the Defence Minister approving the constitution of the Main Review Committee under the Chairmanship of DG (Acquisition) Apurva Chandra in August 2019 for preparation of DAP-2020. DAP 2020 will be applicable with effect from October 1, an official statement said.

DAP 2020 is the renamed iteration of the Defence Procurement Procedure (DPP). The first DPP was promulgated in the year 2002 and has since been revised periodically to provide impetus to the growing domestic industry and achieve enhanced self reliance in defence manufacturing, the statement said.

The new procedure also enables the notification of a List of Weapons/Platforms that will be banned for import. “Relevant incorporation has been done in the DAP to ensure that no equipment as mentioned in the list is procured through import post timelines notified,” the statement added.

The DAP 2020 focuses on Foreign Direct Investment (FDI) in defence manufacturing and indigenisation of the manufacturing process. “With the announcement of new FDI Policy, suitable provisions have been incorporated like new category ‘Buy (Global – Manufacture in India)’ done to encourage foreign original equipment manufacturers (OEMs) to set up ‘manufacturing/maintenance entities’ through its subsidiary in India while enabling requisite protections to domestic industry,” the statement said.

“As part of the Defence Reforms announced in the Atmanirbhar Abhiyan, setting up of a project management unit (PMU) has been mandated to support contract management. The PMU will facilitate obtaining advisory and consultancy support in specified areas to streamline the acquisition process,” the statement said. This is being done to ensure a time bound defence procurement process and faster decision making.

The new procedure has also proposed Simplification of Trial Procedures. “DAP 2020 emphasises the need to conduct trials with an objective to nurture competition based on the principles of transparency, fairness and equal opportunities to all and not as a process of elimination,” the statement said.

“Requisite opportunity will be afforded to participating vendors to rectify shortcomings or faults during the Trials with permission to carry out repairs,” the statement said.

There will also be reservations in categories for Indian vendors. “The categories of Buy (Indian- Indigenously Designed Developed and Manufactured), Make I, Make II, Production Agency in Design and Development, Ordnance Factory Board (OFB), Defence Public Sector Undertaking (DPSU) and Strategic partnership model will be exclusively reserved for Indian Vendors,” the statement said.

These Indian vendors will have to meet the criteria of ownership and control by resident Indian citizens with FDI not more than 49 per cent. This reservation is expected to provide exclusivity in participation to domestic Indian industry.

A separate dedicated chapter has been incorporated for acquisition of systems designed and developed by Defence Research and Development Organisation, DPSUs and OFB. “A simplified procedure with Integrated Single Stage Trials to reduce timelines and laying greater emphasis on evaluation through certification and simulation. Aspects of spiral development have been incorporated,” the statement said.

comment COMMENT NOW