New Delhi. 19 December, 2015. MoD will soon be coming out witha new DefenceProcurement Procedure as well as the Defence Procurement Manual, 2016.
Addressing the Consultative Committee attached to his Ministry in New Delhi the Defence
Minister Manohar Parriker said that the current Defence Procurement Procedure is under amendment and is under the consideration of his Ministry after a Committee of experts headed by Dhirendra Singh
had submitted its report. The Committee was appointed to evolve a policy framework to facilitate
Make in India in defence manufacturing, align the policy evolved with DPP-2013 and suggest
requisite amendments in DPP-2013 to remove bottlenecks in the procurement process and also
simplify/rationalize various aspects of defenceprocurement. Alongwith this, the Defence
Procurement Manual is under the process of internal vetting and is expected to be finalized by
end June, 2016.
The DPP has evolved to DPP-2013 through an iterative process since the first DPP in 2002
(2003, 2005, 2006, 2008, 2011 and 2013). It encapsulates the experience gained in implementing
the procurement process over the years, feedback from the stakeholders, i.e. User Services,
Quality Control and Maintenance Agencies, Defence Finance, Administrative Wing and Industry.
Amendments are carried out continuously keeping in view the requirements of all stakeholders.
In DPP-2013, the acquisition of Weapon Systems and equipment for the Armed Forces flows
from the Long Term Integrated Perspective Plan (LTIPP). The current LTIPP spells out the
capability desired to be achieved by the Armed Forces over 15 years duration (2012-27) .
The Categorisation Committees while considering categorization of all capital acquisition under the
Defence Procurement Procedure (DPP), follow a preferred order of categorisation, in decreasing
order of preference, as indicated below:
(ii) Buy & Make (Indian)
(iv) Buy & Make
(v) Buy (Global)
This hierarchy of Categorization clearly marks a shift towards indigenous equipment.
Department of DefenceProduction with its OFs and DPSUs has been a major instrument to foster
Indigenization. However, over the last few decades, provisions such as “Make” and
BUY+Make(Indian)” categories have been introduced to facilitate the participation of the private
sector in defence production.
Taking part in the discussion, Members of Parliament suggested that Government should give
incentives under the Buy(Indian) and Buy & Make(Indian) categories. They also said that PSUs
should also be allowed to bid for Buy(Indian) category and that offsets should be in terms of