DPP 16 Current Affairs - 2019

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DAC approves procurement of 1,000 engines for fitment in T-72 tanks

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.

Month: Categories: Defence & Security

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