Defence Procurement Procedure Current Affairs - 2019
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National Conference on Self Reliance in Defence Manufacturing is organised at Hyderabad. The National Conference is being held by Forum for Integrated National Security in association with Indigenous Defence Entrepreneurs Association.
Self Reliance in Defence Manufacturing
Self-Reliance in defence manufacturing in India is a matter of great importance to achieve multidimensional credible deterrence and to safeguard national interests in fast-changing international relations with respect to geopolitical as well as geo-economic influence on our nation’s rightful place in the world order.
Under Make in India initiative various initiatives taken towards achieving self-reliance in defence manufacturing, which include:
- Preference for procurement from Indian vendors under the Defence Procurement Procedure (DPP).
- Simplification of Make procedure.
- Introduction of a simplified procedure for Make II sub-category.
- Liberalization of the licensing regime.
- Changes in FDI policy by raising the cap on FDI in the defence sector,
- Simplification of the export procedure.
- Streamlining of defence offset guidelines etc.
- Strategic Partnership Model which envisages the establishment of long-term strategic partnerships with Indian entities through a transparent and competitive process, wherein they would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.
This is the second edition of the conference. The first National Conference on Self Reliance in Defence Manufacturing was held in 2015 at Hyderabad.
Tags: Defence Procurement Procedure • Forum for Integrated National Security • Hyderabad • Indigenous Defence Entrepreneurs Association • Make in India • National Conference on Self Reliance in Defence Manufacturing • Self reliance in defence
Defence Acquisition Council (DAC) has approved procurement of 1,000 engines of 1,000 BHP (brake horse power) for fitment in T-72 tanks of Indian Army. These engines will be procured under ‘Buy & Make’ category at an approximate cost of over Rs 2,300 crore. Most of these engines will be manufactured by Ordnance Factories Board (OFB). Their fitment will enhance mobility, agility and acceleration of T-72 tanks making them more versatile and effective in the battlefield.
Defence Procurement Procedure(DPP)-16
DAC also approved several amendments to Defence Procurement Procedure(DPP)-16, the manual governing defence procurement. The amendments aim to reduce timelines in defence procurements and streamline Defence Procurement Procedures.
The amendments limit time period for executing Repeat Order to five years after date of completion of warranty of final delivery in previous contract. It also extended repeat order provisions to procurements by other services like Central Armed Police Force (CAPF) and Border Roads Organisation (BRO).
The amendments also include permissions to commence with benchmarking of cost for equipment immediately on receipt of trial report in Service headquarter, legislating provisions for exchange rate variations when pursuing procurement with ‘Option Clause’.
It also includes providing clarity on guidelines for easing provisions for imposition of LD Clause in upgradation and alteration cases, automatic incorporation of applicability of latest legislation or changes or amendment of any act or law, rules or regulations.
These measures will go long way in obviating under procedural delays. It will also hasten activities by shrinking procurement timelines and give due preference to indigenization.