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EXPLAINED : DEFENCE ACQUISITION PROCEDURE – 2020

EXPLAINED : DEFENCE ACQUISITION PROCEDURE – 2020

Context

Defence Acquisition Procedure (DAP) (erstwhile Defence Procurement Procedure or DPP), 2020 was released by the Ministry of Defence (MoD).

Details

  • The first Defence Procurement Procedure (DPP) was promulgated in 2002.
  • It has been revised periodically to provide impetus to the growing domestic industry and achieve enhanced self reliance in defence manufacturing.
  • It included provisions to encourage FDI to establish manufacturing hubs both for import substitution and exports while protecting interests of Indian domestic industry.
  • It has been aligned with the vision of Atmanirbhar Bharat and empowers the Indian domestic industry through Make in India initiative with the ultimate aim of turning India into a global manufacturing hub.

Salient features of DAP 2020

  • A separate dedicated chapter has been incorporated in the DAP 2020 for acquisition of systems Designed and Developed by DRDO/DPSUs/OFB.
  • A simplified procedure with Integrated Single Stage Trials to reduce timelines and laying greater emphasis on evaluation through certification and simulation.
  • 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 with FDI not more than 49%.

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