Defence Minister unveils Defence Acquisition Procedure-2020

The Defence minister Rajnath Singh unveiled the Defence Acquisition Procedure (DAP) -2020 today on September 28, 2020. The minister said that the new DAP 2020 will empower the Indian domestic industry through Make in India initiative.

Highlights

  • The DAP is in line with Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat.
  • It aims of turning India into a global manufacturing hub under the Make In India Initiative.

Provisions

  • The Offset guidelines have been revised, Under the new offset guidelines,  preference will be given to manufacture of complete defence products over components.
  • The new DAP also protect the interests of Indian domestic industry. The categories including the Buy(Indian-IDDM), Make I, Make II, Production Agency in Design & Development, OFB/DPSU and SP model will be exclusively reserved for Indian Vendors. This, it meets the criteria of Ownership and Control by resident Indian citizens.
  •  It Notify a List of Weapons/Platforms for Ban on Import.
  •  Request For Information (RFI ) stage has been introduced that will explore willingness of the prospective foreign vendors in order to progressively undertake manufacture and setup an indigenous eco system.
  • New Category of Buy (Global – Manufacture in India) has been added that incorporates ‘manufacture of either the entire or a part of the equipment including the spares, assemblies, sub-assemblies and Maintenance.
  • Contractual Enablement has been incorporated that optimizes Life Cycle Support costs and system enhancements through indigenous eco system incorporated.
  • FDI in Defence Manufacturing- It has incorporated new category ‘Buy (Global – Manufacture in India)’  to encourage foreigners to setup ‘manufacturing or maintenance entities’ through its subsidiary in India .
  • Time Bound Defence Procurement Process and Faster Decision Making PMU be set up to facilitate obtaining advisory and consultancy support to streamline the Acquisition process.

Thus, the DAP 2020 is an enabler and industry friendly procedure to build a confidence and meet aspirations of stakeholders across the spectrum.

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