Capital Acquisition Current Affairs - 2019
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The Defence Acquisition Council (DAC) chaired by Union Defence Minister Nirmala Sitharaman has approved various measures to simplify Defence Procurement Procedure (DPP). DAC is Defence Ministry’s highest decision-making body on capital procurement of Indian Armed Forces (Army, Navy and Air Force).
These measures will be incorporated in DPP-16, the manual governing defence procurement procedure. The changes include devolution of powers within Ministry of Defence and Service Headquarters, deletion of repetitive processes, concurrent running of acquisition process instead of sequential stage clearance, aligning of various documents with revised financial guidelines, amongst others.
These amendments form part of ongoing Business Process Re-engineering in Defence Capital procurements of armed forces. It is in line with continuation of Defence Ministry’s efforts to streamline DPPs and reduce timelines so as to ensure timely delivery of equipment to Armed Forces. These measures will also obviate undue procedural delays and hasten activities besides shrinking procurement timelines.
The Union Government so far has cleared proposals worth Rs 4 lakh crore of military procurement involving close to 135 proposals as part of its efforts to modernise armed forces. But most of these proposals are yet to be implemented due to procedural delays hampering speed of modernisation of armed forces.
The Union Ministry of Defence (MoD) has constituted 13-member Raksha Mantri Advisory Committee on Ministry of Defence Capital Projects (RMCOMP). It will be headed by former secretary Vinay Sheel Oberoi.
The committee will monitor and expedite capital acquisition projects for modernisation of armed forces and bolster armed forces preparedness.
Terms of reference of RMCOMP
It will undertake an independent review and check status of ongoing critical projects worth more than Rs. 500 crore. It will suggest measures to improve the capital acquisition process. It will identify specific issues and bottlenecks that are responsible for delays, and suggest the way forward.
It will also suggest any other issues related to project monitoring and appraisal that may be referred by MoD. The committee will have tenure until end of August 2018. It will have to present initial status report on identified projects to Defence Minister by 31 March 2018.
The report shall include, apart from current status of projects, issues, remedial measures and follow-up strategy. It will suggest modern management concepts that can be leveraged to reduce delays and also actionable measures to improve capital acquisition process/procedures.