The Ministry of Defence (MoD) on Tuesday issued a second draft of the Defence Procurement Procedure of 2020 (DPP-2020) and solicited feedback by August 10, 4 months after it put out the primary draft of the brand new guide that may supersede and replace the present DPP-2016.
“Based on inputs received from the environment, DPP-2020 has now been titled as Defence Acquisition Procedure (DAP) 2020,” acknowledged the MoD. Driving this terminological change is the conviction that the policy ought to look past procurement (buy) of gear and supply for options equivalent to leasing and upgrading.
The draft DAP-2020 retains the primary draft’s emphasis on selling larger indigenous content material in gear manufactured in India, together with underneath licence from international distributors. For most acquisition classes, the DAP-2020 will demand 10 per cent larger indigenisation than underneath DPP-2016. (see graphic)
For the primary time, the MoD proposes to include into official policy a ban on import of specific sorts of weapons and platforms.
“With a view to promote domestic and indigenous industry as also align the DAP with the reforms enunciated in the Atmanirbhar Abhiyan (self-reliance campaign), the MoD will notify a list of weapons/platforms banned for import, updated from time to time,” the draft states.
It is unclear whether or not this “no import list” will probably be aligned with the MoD’s Defence Production Policy (DPrP) of 2018, which mandates self-reliance by 2025 within the manufacturing of helicopters, fighter plane, warships, tanks, and missiles.
DPrP-2018 additionally stipulates elevating exports to $5 billion yearly by 2025, and producing items and providers value $26 billion to create employment for 2-Three million folks.
The MoD has additionally launched a brand new procurement class, entitled Buy (Global — Manufacture in India). This stipulates indigenisation of no less than 50 per cent of the contract worth of a international buy purchased with the intention of subsequently constructing it in India with expertise switch.
Meeting this is able to require distributors to provide solely the minimal crucial numbers from overseas in ready-built situation, whereas manufacturing a bigger share in India.
The class additionally permits distributors to satisfy the indigenous content material requirement by way of manufacturing spares and assemblies, or establishing upkeep, restore and overhaul (MRO) amenities for the gear, together with by way of the international vendor’s subsidiary in India.
The draft DAP-2020 particulars the procedures for “leasing” of gear and platforms. Leasing is predicted to save cash by allowing the navy to hire back-up gear and providers, equivalent to air transport, mid-air refuelling, MRO and simulator coaching, fairly than incur enormous capital outlays in shopping for outright.
In addition to a full new chapter on “leasing”, the draft DAP-2020 additionally incorporates a brand new chapter for procuring gear and platforms primarily based on software program and knowledge and communications expertise (ICT). Given the fast obsolescence of ICT-based methods, extra versatile procurement processes are wanted to maintain up with change.
Another new chapter offers with ‘post-contract administration.” This lays down tips and processes for points that come up throughout the contract interval, which usually final for a number of a long time in defence contracts.
While aiming at rushing up procurement, the brand new process marginally slows the Fast Track Procedure, which is designed for emergency purchases. DPP-2016 mandated a most interval of 112-169 days for concluding a contract, together with the time for trial analysis. DAP-2020 stipulates a barely longer interval of 122-231 days. In each circumstances, supply of gear would take one other 3-12 months from the date of contract signing.
The new process is being drafted by an MoD committee headed by its acquisitions chief, Apurva Chandra.