Defence Procurement Procedure 2016 Current Affairs - 2019
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The Union Government has unveiled Defence Procurement Procedure 2016 (DPP 2016).
It was unveiled by Union Defence Minister Manohar Parrikar on the sidelines of the Defexpo-2016 held in Goa.
The DPP 2016 will replace the Defence Procurement Procedure 2013 (DPP 2013) and shall come into force on 1 April 2016.
Highlights of DPP 2016
- Aim: To ensure timely procurement of defence (military) equipment, systems, and platforms required by the armed forces through optimum utilization of allocated budgetary resources.
- Scope: It will cover all capital acquisitions undertaken by the Union Ministry of Defence, Defence Services and Indian Coast Guard (ICG) both from indigenous sources and import.
- Capital Acquisitions Schemes: They are broadly classified into 3 categories viz.
- Buy scheme: Outright purchase of equipment and procurements under this scheme are further categorized as Buy (Indian- IDDM), Buy (Indian), and Buy (Global).
- IDDM stands for Indigenously Designed Developed and Manufactured.
- Buy and Make scheme: The procurements are categorized as Buy and Make and Buy and Make (Indian).
- Make category Scheme: It seeks developing long-term indigenous defence capabilities and procurements.
- It empowers Defence Acquisition Council (DAC) to take a fast-track route in order to acquire weapons, which were limited to the armed forces till now.
- Procurement of defence equipment: Arranged in decreasing order of priority are categorized as (i) Buy (India-IDDM). (ii) Buy (Indian). (iii) Buy and Make (Indian). (iv) Buy and Make. (v) Buy (Global).
- Buy (India-IDDM) seeks to boost indigenous production and procurements under it should 40% sourced locally in terms of the content.
- It will promote domestic manufacturing, including government funding R&D and recognition of the Micro, Small and Medium Enterprises (MSMEs) in technology development.
- The DPP 2016 has been framed based on the recommendations of the Dhirendra Singh Committee that was appointed in May 2015 to review the DPP 2013.
- The Committee was tasked to evolve a policy framework to facilitate Make in India in defence manufacturing in order align the policy evolved with DPP-2013.
- It was also tasked to suggest requisite amendments in DPP-2013 in order to remove bottlenecks in the procurement process and also rationalize various aspects of defence procurement.