Defence ministry to overhaul procurement rules, aims for faster deals and stronger private sector role
New Delhi: The defence ministry has initiated a review of its procurement procedure, with the focus being on cutting down timelines, increasing ease of doing business for the private sector and encouraging growth of the defence manufacturing ecosystem.
The Rajnath Singh-led ministry has notified a special committee headed by the director general (acquisition) to carry out extensive deliberations with all stakeholders and suggest changes to the existing Defence Acquisition Procedure (DAP). The committee includes senior officers from MoD, representatives from the defence industry and academia.
Former DG (acquisition) Apurva Chandra has been appointed as the principal advisor to the committee and suggestions have been sought from all stakeholders by July 5, officials said. The main aim is to ensure that acquisitions are carried out in a timely manner to meet the operational requirements of the armed forces.
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A major problem area for the forces has been the long procurement procedure that takes 2-3 years for any acquisition to be processed. This is on account of the checks and balances in the system, the requirement for extensive testing and a long winding process of commercial negotiations.
The armed forces have been appreciative of the emergency procurement (EP) procedure that has been approved for them by the defence ministry in five tranches since 2021. Under this process, equipment has been ordered within a matter of weeks and delivered in a year, a huge leap from the past where it took multifold time and effort.
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The new procedure is likely to have a fast-track procurement process that can shrink timelines to under six months for selection and placing orders. This will come as a big relief to the industry that relies on quick orders and deliveries for business.
The terms of the committee include promoting technology infusion through indigenously designed and developed systems and enabling Make in India through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign equipment manufacturers to invest in India through the FDI route and establishing India as a global defence manufacturing and MRO hub.
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