India on Monday (28 September) granted permission to the armed forces to procure military equipments on lease, according to Defence Ministry’s new acquisition procedure.
The Defence Acquisition Procedure (DAP) 2020, unveiled by Union Defence Minister Rajnath Singh, replaces the existing Defence Procurement Procedure (DPP), ThePrint reported. The procedure will be enforced from 1 October.
The move will allow Indian forces to take on lease and use various military equipments, substituting huge initial capital outlays, according to the Ministry.
The new procedure has five new categories and the policy pertaining to leasing has been included for the first time. On what all can be leased, Director General (Acquisition) Apurva Chandra told IANS, “There is no such list and it would be on a case to case basis.”
He also said that leasing is a new category introduced to enable operating of assets without owning thereby, substitute huge initial capital outlays.