A 12-member high-level committee has been formed by the Union government to revise and align the procedure of Defence procurement with the aim of strengthening the 'Make in India' initiative. The panel headed by the Director-General (Acquisitions) has been tasked to review the Defence Procurement Procedure (DPP) 20016 and the Defence Procurement Manual (DPM) 2009.
- The DPP contains policies and procedures for procurement and acquisition from the capital budget of the Defence Ministry in order to modernise the Armed Forces including the Coast Guard.
- The DPM contains principles and procedures relating to procurement of goods and services for the Defence Services, organisations and establishments.
- The panel will also include provisions in the policies in order to promote Indian start-ups and boost research and development.
- Defence Minister Rajnath Singh has approved the constitution of the panel that has been given six months to submit its report of recommendations.
- The panel will revise and align the procedures with the aim of ensuring seamless flow from asset acquisition to life cycle support.
- The review panel will lay down policies to remove procedural bottlenecks and hasten defence acquisition.
- The primary task of the panel is to simplify policy and procedures to facilitate greater participation of indigenous industries and to develop a robust defence industrial base in the country.
- The panel will examine and incorporate new concepts, such as life cycle costing, life cycle support, performance-based logistics, Information Communication Technology (ICT), lease contracting, codification and standardisation.
- Apart from the Director-General (Acquisitions), the panel also comprises 11 other members, not below the equivalent rank of Joint Secretary or Major General.
Terms of reference of the Committee include to:
- Revise the procedures as given in DPP 2016 and DPM 2009, so as to remove procedural bottlenecks and hasten defence acquisition.
- Align and standardise the provisions in the DPP 2016 and DPM 2009, wherever applicable, to optimise life cycle support for equipment.
- Simplify policy and procedures to facilitate greater participation of Indian Industry and develop robust Defence Industrial base.
- Wherever applicable, examine and incorporate new concepts, such as life cycle costing, life cycle support, performance based logistics, ICT, lease contracting, codification & standardisation.
- Include provisions to promote Indian start-ups and research & development.
- Any other aspect which will contribute towards refining the acquisition process and support the ‘Make in India’ initiative.
- The Committee has been given six months to submit its recommendations.
- DPP-2016 has introduced specific provisions that will act as a growth stimulus to the domestic defence industry.
- In order to promote indigenous design and development of defence equipment, DPP 2016 has introduced the "Buy-IDDM" category of acquisition and accorded it the top most priority.
- For the first time ever, provision to procure equipment with enhanced performance parameters, has been accounted for – this will enable the armed forces procure the most advanced weapon systems available in the market.
- DPP 2016 also provides greater impetus to the MSMEs, with certain category of "Make in India‟ projects reserved exclusively for them.
- There are also other provisions and procedural measures that have been introduced to make the procurement process more efficient and effective.