The new Defence Procurement Procedure (DPP) - 2016 has been implemented by the Government with effect from 01.04.2016. DPP-2016, inter alia, focuses on institutionalizing, streamlining, and simplifying procedure to give a boost to the Make in India initiative of the Government of India, through Indigenous design, development and manufacturing of defence equipment, platforms & systems. The Make procedure has been simplified to ensure increased participation of the Indian industry.
In order to promote indigenous design and development of defence equipment, DPP-2016 has introduced a new category for capital procurement viz. Buy (Indian-IDDM) (Indigenously Designed Developed and Manufactured). While categorising a case, this category is accorded highest priority by the Buyer. Since promulgation of DPP-2016 (i.e. 01.04.2016), a total of 79 capital contracts for '1,28,077.41 Crore have been signed (upto 30.11.2017), out of which, 46 contracts amounting to '44,219.55 Crore are with Indian vendors and 33 contracts for '83,857.86 Crore are with Foreign vendors. Further, the policy on Strategic Partnerships in the Defence Sector was also finalised by the Government in 2017 and promulgated on 31.05.2017 as Chapter-VII of DPP-2016 titled as Revitalising Defence Industrial Ecosystem through Strategic Partnerships". The Chapter has also been uploaded on Ministry of Defence website: https://www.mod.nic.in. The Policy on Strategic Partnerships is intended to institutionalise a transparent, objective and functional mechanism to encourage broader participation of the private sector, in addition to DPSUs / OFB, in the manufacture of defence platforms and equipment such as aircraft, submarines, helicopters and armoured vehicles.
This information was given by RakshaRajyaMantriDr.SubhashBhamre in a written reply to Shri P. Bhattacharya in Rajya Sabha today.
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