Quepem, Goa. 28 March 2016. FICCI welcomes the announcement of Procedure (DPP) 2016 which spells out the thrust on self-reliance and greater indigenisation. FICCI fully supports the government vison to cut down the procurement cycle and install stronger and robust mechanisms to monitor for probity at various stages of  procurement.

Dr. A Didar Singh, Secretary General, FICCI congratulated Ministry of Defence for encouraging innovations by the Indian industry. He said “The categorization of Indigenously Designed, Developed and Manufactured  (IDDM) as the first preferred procurement category installs  faith and belief on Indian industries ability towards meeting the requirement of defence forces through indigenous innovations leading to design, development and manufacturing of defence products.”

Jayant D Patil, Chairman, FICCI-Defence and Aerospace Committee and Senior Vice President, Head – Defence & Aerospace, Larsen & Toubro Ltd mentioned “The DPP 2016 is path breaking step in creation of IDDM category and bringing in merit driven acquisition these steps are going to help Indian Industry build the much needed Defence and Aerospace Industrial base in country. We are awaiting for final version of DPP 2016 which will include appendices and chapter on Strategic Partnership.”

Pierre de Bausset, Chairman, FICCI- Make in India on Defence and Aerospace, and President of Airbus Group in India said “DPP 2016, the ‘Make in India’vision and the IDDM and Buy and Make Indian categories will help Global FOEMs and Indian companies to forge partnership for co-development and co-production. The integration of Indian companies in the global supply chain will in a true sense help the establishment of Defence Manufacturing. We are convinced that the focus on speed and transparency of the new DPP will help the armed forces of the country and enhance the engagement of FOEM in campaigns in India.”

Col. H S Shankar, Chairman, FICCI Defence and Aerospace Sub Committee on MSME mentioned that “Enhancing the role of MSMEs in defence sector is one of the defining features of DPP. The focus on MSME with ‘Bottom-up’ approach will help building sustainable industry defence industrial ecosystem. DPP 2016 will help Innovations, niche product development by MSMES which in turn will lead to job creation, push to ‘Skill India and Start-up India. The R&D and Developmental Fund envisages in DPP needs to be enhanced to Rs 100 crores per project with yearly outgo of minimum Rs 500 crores on a year, which should be disbursed to MSMEs by a selection process which should be simple and transparent.”

Sudhakar Gande, Chairman – FICCI Task Force on Aerospace and Air Defence and Vice Chairman, AXISCADES Aerospace & Technologies Ltd while welcoming the thrust on indigenisation emphasized “this policy along with other appropriate measures needs to be taken simultaneously to create an enabling eco system for creating and nurturing of the aerospace industry in India. The industry is currently at a nascent stage and these steps once taken will have a force multiplier effect in job creation and skill development across the aerospace industry”.