The Defence Minister, in a crucial move to enhance the efficiency of the defence sector, has declared the formation of a review committee. This committee will operate under the chairmanship of the Director General (Acquisition). The primary objective of establishing this group is to meticulously examine the Defence Procurement Procedure (DPP) 2016 and Defence Procurement Manual (DPM) 2009.
Understanding the Defence Procurement Procedure and Manual
The DPP is a comprehensive document outlining the policies and procedures for procurement and acquisition from the defence ministry’s capital budget. It plays a significant role in modernising our nation’s Armed Forces, including the Coast Guard. On the other hand, the DPM encompasses the principles and procedures concerning the procurement of goods and services for Defence Services, organisations, and establishments.
The Mission of the Review Committee
The purpose of the review committee is to fine-tune and align the defence procurement procedures. The end goal is to ensure a seamless transition from asset acquisition to life cycle support and amplify the ‘Make in India’ initiative propelled by the Government. This initiative seeks to boost India’s manufacturing sector and transform the country into a global design and manufacturing hub.
A Closer Look at the Committee’s Terms of Reference
The terms of reference for the committee are comprehensive and aim at addressing various aspects of the procurement process. Some of their key functions include:
– Streamlining and revising the procedures to eliminate procedural roadblocks and expedite the acquisition process.
– Standardising provisions to optimise life cycle support for equipment.
– Simplifying policy and procedures to spur greater participation from the industry as well as develop a robust Defence industrial base.
– Incorporation of new concepts such as life cycle costing, life cycle support, performance-based logistics, lease contracting, codification & standardisation wherever applicable.
Additionally, the committee will also establish provisions to nurture Indian startups and Research & Development in the defence sector. They will also concentrate on other aspects that can refine the acquisition process and reinforce the ‘Make in India’ initiative.
A Brief Outline of Pertinent Facts
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| Title | Description |
|---|---|
| Committee Formation | Established by the Defence Minister under Director General (Acquisition) |
| Objective | Review DPP 2016 and DPM 2009 |
| Goal | Ensure seamless flow from asset acquisition to life cycle support and strengthen ‘Make in India’ |
| Timeline | Six months to submit recommendations |
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Expected Outcome and Timeline
The review committee, with its comprehensive terms of reference, is expected to significantly revamp the defence sector’s procurement procedures. The timeline given to the committee for submitting its recommendations is six months. The proposed reforms are believed to not only streamline the acquisition process but also boost the nation’s initiative towards becoming self-reliant in the defence sector.