Raksha Mantri Shri Rajnath Singh today unveiled the draft Defence Procurement Procedure (DPP) 2020 that aims at further increasing indigenous manufacturing and reducing timelines for procurement of defense equipment.
These and several other such innovative measures were part the Draft finalized by a high-level committee headed by DG Acquisition, Ministry of Defence that was set up in August 2019.
Boost to ‘Make in India’
Speaking on the occasion, Raksha Mantri said, “Our aim is to make India self-reliant and a global manufacturing hub. The government is constantly striving to formulate policies to empower the private industry including MSMEs in order to develop the eco-system for indigenous defense production. The defense industry of India is a strategically important sector having huge potential for growth. It needs to be the catalyst for India’s economic growth and realization of our global ambitions.”
Shri Rajnath Singh added, “With the experience gained by the industry and the Ministry of Defence (MoD), it is now time to take further steps to strengthen ‘Make in India’ initiative, refine Life Cycle Support of procured equipment & platforms and hasten the defense acquisition process by further simplifying the procedures & reducing the overall procurement timelines.”
The major changes proposed in the new DPP are:
Indigenous Content ratio hiked
In view of the experience gained by the domestic industry, the Draft proposes increasing the Indigenous Content (IC) stipulated in various categories of procurement by about 10% to support the ‘Make in India’ initiative.