MoD to expand competitive bidding for defence procurement: Defence Secy

As part of its 'Year of Reforms' agenda, the Ministry of Defence will enhance ease of doing business, streamline export approvals, and address procedural challenges for private firms

In a move that could level the playing field for private defence firms, the Ministry of Defence (MoD) will expand the use of competitive bidding in procuring weapons and systems for the armed forces. This would be particularly for the equipment where Indian private industry has established capacity, Defence Secretary Rajesh Kumar Singh told Business Standard.

 

This is part of the government's ongoing shift from nomination, or the practice of directly awarding procurement contracts to public-sector entities without a tendering process. Industry insiders estimate that a substantial share of the production of defence public sector undertakings (DPSUs) is secured through