New Defence Procurement Procedure and Defence Procurement Manual, 2016 on the Anvil: Parrikar | ADU New Defence Procurement Procedure and Defence Procurement Manual, 2016 on the Anvil: Parrikar | ADU



New Defence Procurement Procedure and Defence Procurement Manual, 2016 on the Anvil: Parrikar

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  • 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:
    (i) Buy(Indian)
    (ii) Buy & Make (Indian)
    (iii) Make
    (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
  • overall requirements of users.
    The Members of Parliament who attended the meeting included Pinaki Mishra, Prof.
    Saugata Roy, Prof. A. SeetaramNaik, Rajeev Chandrasekhar, Dr. Mahendra Prasad,
    T.K. Rangarajan, Bhupender Yadav, and  Samsher Singh Manhas.
    The DefenceSecretary G. Mohan Kumar, Defence Production Secretary  Ashok Kumar
    Gupta, DG, DRDO S. Christopher and other senior officials of MoD attended the meeting.

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