Policy & Government

MoD discusses proposed defence procurement guidelines with industry

The defence ministry’s procurement chief, Apurva Chandra, has announced that, to promote indigenization, defence procurements worth less than Rs 50 crore per year would be reserved for micro, small and medium enterprises (MSMEs).

Addressing an industry gathering in New Delhi on the draft Defence Procurement Procedure of 2020 (DPP-2020), that was placed in the public domain for comments in March, Chandra said the foreign direct investment hike to 74 per cent proposed in DPP-2020 would not be hiked to 100 per cent as the proposed hike adequately protected the concerns of foreign industry.

“I think it is a big step that we have moved from 49 per cent to 74 per cent and we should celebrate that rather than pitching for 100 per cent as it does not make much of a difference, since you (i.e. foreign industry) have direct control,” said Chandra.

In a statement that MSMEs are welcoming, Chandra said: “We are contemplating to reserve any procurement less than Rs 50 crore per year for MSMEs within India, if such products are available within the country.”

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