Rajnath Singh unveils New Defence Acquisition Procedure

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Rajnath Singh unveils New Defence Acquisition Procedure

Under the new policy, the offset guidelines have also been revised facilitating preference to defence majors offering to manufacture products in India over relevant components.

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September 28, 2020 17:01 IST
Rajnath Singh unveils New Defence Acquisition Procedure
Rajnath Singh unveils New Defence Acquisition Procedure

New Delhi: Defence Minister Rajnath Singh on Monday unveiled a new Defence Acquisition Procedure (DAP) at the Defence Acquisition Council (DAC) meeting with a focus on significantly boosting indigenous production and turning India into a global manufacturing hub of weapons and military platforms.

“Raksha Mantri Shri @rajnathsingh released the New Defence Acquisition Procedure (DAP) at the Defence Acquisition Council (DAC) meeting in South Block today,” read a tweet from the Office of the Defence Minister.

Singh said the DAP has also included provisions to encourage foreign direct investment (FDI) to establish manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry.

It further said, “With the new Foreign Direct Investment policy announced, the DAP 2020 has adequately included provisions to encourage FDI to establish manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry.”

“The categories of Buy (Indian-IDDM), Make I, Make II, Production Agency in Design & Development, OFB/DPSU and SP model will be exclusively reserved for Indian Vendors meeting the criteria of Ownership and Control by resident Indian citizens,” said the Defence Minister in another tweet.

A new procedure has been included as a new chapter in DAP and structured as an enabling provision for Services to procure essential items through Capital Budget under a simplified procedure in a time bound manner, the Office of the Defence Minister said.

The Offset guidelines have also been revised, wherein preference will be given to manufacture of complete defence products over components and various multipliers have been added to give incentivisation in discharge of Offsets, it added.

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