Amid the border tension between India and China, the Union Defense Minister Rajnath Singh presented the Defense Acquisition Procedure (DAP) – 2020 in the national capital on Monday. The DAP 2020 will be applicable from October 1.
On the microblogging site Twitter, Singh said that DAP 2020 has aligned itself with Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat and empowering the Indian domestic industry through the Make in India initiative with the ultimate goal of converting India. in a global manufacturing center. .
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He also said: “With the new Foreign Direct Investment policy announced, the DAP 2020 has appropriately included provisions to encourage FDI to establish manufacturing centers for both import substitution and exports, while protecting the interests of the Indian national industry “.
“The categories of Purchase (Indian-IDDM), Make I, Make II, Agency of production in design and development, OFB / DPSU and model SP will be reserved exclusively for the Indian suppliers that meet the criteria of ownership and control of resident Indian citizens “. Singh added.
“Happy to present the new Defense Acquisition Procedure Document (DAP) -2020 today. The DAP 2020 Formulation has been made after incorporating comments and suggestions from a broad spectrum of stakeholders,” he tweeted.
The Defense Minister also said: “The compensation guidelines have also been revised, in which preference will be given to the manufacture of complete defense products over components and various multipliers have been added to incentivize the offloading of offsets.”
“A new procedure has been included as a new chapter in the DAP and it has been structured as an enabling provision for the Services to acquire essential items through the Capital Budget under a simplified procedure and with defined deadlines,” he added.
The first Defense Procurement Procedure (DPP) was enacted in 2002 and since then has been periodically revised to boost the growing national industry and achieve greater self-sufficiency in defense manufacturing. SIngh had approved the constitution of the Main Review Committee under the Chairmanship of DG (Acquisition) Apurva Chandra in August 2019 for the preparation of DAP-2020.
The specific reforms enunciated in Atmanirbhar Bharat Abhiyan, have been incorporated as in: –
(a) Notify a list of weapons / platforms for import ban. The pertinent incorporation has been made in the DAP to guarantee that NO equipment as mentioned in the list is acquired ex-import after the notified deadlines.
(b) Indigenization of imported spare parts.
(i) Request for information. The RFI stage will explore the willingness of potential foreign suppliers to progressively undertake manufacturing and establish an indigenous ecosystem at the spare / sub-component level.
(ii) New Purchase Category (Global – Manufacture in India). The new category incorporates the manufacture of all / part of the equipment or spare parts / assemblies / sub-assemblies / maintenance, repair and overhaul (MRO) installation for the equipment, through its subsidiary in India.
(iii) Co-production through IGA. This enables the establishment of co-production facilities through IGA achieving ‘Import Substitution’ and reducing the Life Cycle Cost.
(iv) Contractual Qualification. Buyer’s right to optimize life cycle support costs and system improvements through the embedded indigenous ecosystem.
(c) FDI in Defense Manufacturing. With the announcement of the new FDI Policy, appropriate provisions have been incorporated such as the new category ‘Purchase (Global – Manufacture in India)’ made to encourage foreign OEMs to establish ‘manufacture / maintenance entities’ through from its subsidiary in India, while enabling the necessary protections for domestic companies. industry.
(d) Time-bound defense procurement process and faster decision-making. As part of the Defense Reforms announced in Atmanirbhar Abhiyan, the creation of a PMU has been commissioned to support contract management. The PMU will facilitate the obtaining of advisory and consulting support in specific areas to expedite the Acquisition process. Other topics included in these reforms are: –
(i) Realistic GSQR weapon / platform setup. The SQR formulation process has been further refined with a greater emphasis on identifying verifiable parameters based on analysis of “comparative” equipment available in the global and domestic markets.
(ii) Simplification of trial procedures. DAP 2020 emphasizes the need to carry out judgments with the objective of nurturing competition based on the principles of transparency, fairness and equal opportunities for all and not as a process of elimination.
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