Defence Procurement Procedure Current Affairs - 2019
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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.
Tags: 1000 BHP engines • DAC • Defence • Defence Procurement Procedure • DPP 16
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.