New defence procurement procedure finalised, focus on more indigenisation

The Defence Acquisition Council on Monday finalised parts of the new Defence Procurement Procedure (DPP) which focuses on higher level of indigenisation, Defence Minister Manohar Parrikar said.

At a briefing following the council meeting, the minister said the DPP was finalised, but some changes are to be made.

This however does not include the chapter on 'strategic partners' which will lay guidelines on identifying partners from private sector for key strategic manufacturing.

The revised DPP envisages providin g a boost to the Make in India initiative, enhanced role for private sector, and promoting medium and small scale industries.

The new DPP introduces a new category of Buy Indian - Indigenous Design Development and Manufacturing (IDDM) under which indigenously designed equipment with 40 percent content will be procured.

In case where it is difficult to prove if the product was developed in India, those with 60 percent indigenisation will be taken under this category.

Parrikar said a preamble will also be there in the DPP, which will define the "logic of procurement" and stress on Make in India.

The minister added that the process of finalising and notifying the new DPP will take at least two months. The chapter on strategic partners will however take a few more months as the report of a committee led by former DRDO chief V.K. Aatre is likely to give its report by January 15.