Latest news with #DAP2020
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Business Standard
28-07-2025
- Business
- Business Standard
Private industry expects a timebound defence acquisition rules review
While the Ministry of Defence (MoD) is working to finalise a new version of the Defence Acquisition Procedure (DAP) before the end of this calendar year, it has not yet communicated a clear roadmap or timeline for the completion of the comprehensive review of the existing DAP 2020, private defence industry insiders told Business Standard. While the industry hopes for an expeditious conclusion to the review process, major players remain cautiously optimistic given how the process is unfolding. 'Several stakeholder meetings have taken place, and discussions are ongoing. We appreciate the open-minded and pragmatic approach shown by the MoD,' an industry insider said. Industry insiders are encouraged by what they describe as a genuine intent by the MoD to streamline procedures and shorten procurement cycles. 'There is a willingness to consider industry feedback and adopt rational suggestions, and there have been continued engagements to build consensus,' said one source. Highlighting a key concern for both the armed forces and industry, one private sector executive stressed that whenever the draft of the revised DAP is shared with stakeholders, it must include clear measures to enforce shorter procurement — rather than simply outlining deadlines. 'While the process is underway, a clear roadmap for the completion of the review has not been communicated to the industry yet,' added the source. Stressing the urgency of a prompt review and follow-up action, industry insiders point out that Operation Sindoor has brought five critical priorities into focus- enhanced need for self-reliance, fast-tracked acquisitions, induction of appropriate technologies, creation of strong industry champions, and development of an ecosystem to provide surge industrial capacity. The policymakers will clearly need to think out of the box on the approach to achieving these goals, they add. Within defence policy circles, the consensus is that funding isn't the issue — rather, the prolonged procurement timeline is, which has often forced the MoD to surrender parts of the military modernisation budget in past years. Notably, the financial year 2024–25 marked the first time in five years that the MoD fully utilised the military modernisation budget. The MoD's review, launched under its 'Year of Reforms' initiative, aims to streamline India's defence procurement policy, long criticised for delays and inefficiencies. Speaking at the Confederation of Indian Industry's annual business summit in New Delhi in May, Defence Secretary Rajesh Kumar Singh noted that the MoD has already shortened various procurement steps, potentially saving 69 weeks. However, he emphasised this was still inadequate. The secretary believes the current 5 to 6-year timeline to acquire a weapon — from request for proposal to trials and cost negotiations — should ideally be reduced to two years. On June 19, the MoD announced a comprehensive review of the DAP 2020 to 'align it with existing policies and initiatives.' A committee chaired by the director general (Acquisition) was constituted to lead extensive deliberations with all stakeholders. Comprising senior MoD officials, as well as representatives from the defence industry and academia, the committee had already begun consultations by the time of the announcement and had invited stakeholder suggestions by July 5. Former IAS officer Apurva Chandra (1980 batch), a former DG (Acquisition), who led the formulation of the DAP 2020, has been appointed Principal Adviser to the committee. The stated aim of the DAP review is twofold. First, to meet the operational requirements and modernisation goals of the Armed Forces in a timely manner. Second, to align acquisition procedures with existing policies and initiatives in order to achieve Aatmanirbharta (self-reliance) in defence; promote 'Make in India' in defence manufacturing, particularly in the private sector; establish India as a global defence manufacturing and maintenance, repair, and overhaul hub; and promote the design and development of defence technologies, with a focus on startups and private industry. Towards achieving these goals, stakeholder suggestions had been sought on policy and procedural changes to streamline acquisition processes, including ease of doing business, conduct of trials, post-contract management, fast-track procedures, and adoption of emerging technologies, such as artificial intelligence, and language improvements aimed at eliminating ambiguity, removing inconsistencies, and enhancing procedural clarity in the DAP. India now has one of the largest defence industrial ecosystems in the developing world- 16 defence public sector undertakings, over 430 licensed companies, and about 16,000 micro, small and medium enterprises. Between 2016–17 and 2023–24, India's total defence production grew by more than 1.7 times from ₹74,054 crore to ₹1.27 trillion, while the private sector's contribution rose by about 1.9 times, from ₹14,104 crore to ₹26,675 crore. Yet, its share in overall production remained largely range-bound, fluctuating between 19 per cent and just over 21 per cent.
Hindustan Times
20-06-2025
- Business
- Hindustan Times
Defence ministry sets up panel to review acquisition procedure
The defence ministry on Thursday said it has set up a high-powered committee, headed by the director general (acquisition), to steer a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 for speedy modernisation of the armed forces and boosting self-reliance in the critical sector. The panel includes senior officers from the ministry, representatives from the defence industry and academia. 'Following the declaration of 2025 as the 'year of reforms', the defence ministry has initiated a comprehensive review of the DAP 2020 to align it with existing government policies and initiatives. A committee headed by the director general (acquisition) has been constituted to carry out extensive deliberations with all stakeholders,' the defence ministry said. The panel has begun consultations with the stakeholders and invited suggestions from them by July 5. The aim of the review, the ministry said, is to meet the operational requirements and modernisation needs of the armed forces in a timely manner to ensure national security and achieve 'atmanirbharta' (self-reliance) goals by promoting technology infusion through indigenously designed and developed systems. It also seeks to boost the Make-in-India initiative by promoting defence manufacturing through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign original equipment manufacturers to invest in the country and establish India as a global defence manufacturing and MRO (maintenance, repair and overhaul) hub, the ministry said in a statement. Another goal is to 'promote design and development in both public and private sectors, with a focus on startups, innovators, and the private defence industry for indigenous technology infusion'. The panel was formed weeks after India launched Operation Sindoor in the early hours of May 7 and struck terror and military installations in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror strike in which 26 people were shot dead. It triggered a four-day military confrontation with Pakistan before the two sides reached an understanding on stopping all military action on May 10. Indian forces deployed several indigenous weapons during the clash. The panel has sought suggestions from stakeholders on a raft of issues including policy/procedural changes to streamline the acquisition processes, ease of doing business, conduct of trials, post-contract management, fast-track procedures, adoption of new technologies including artificial intelligence, and language improvements to eliminate ambiguity and enhance procedural clarity in the DAP. On May 30, defence secretary Rajesh Kumar Singh said DAP 2020, the document that spells out the complex procurement process, is being revisited to reflect current realities. He said the government is taking steps to shorten the weapon procurement cycle and has already cut it by more than a year -- a move aimed at accelerating the modernisation of the armed forces. 'The defence ministry has already, in the year of reforms, slashed the timelines for some of the processes in the procurement cycle. This would save about 69 weeks overall in the process timeline,' he said at a defence conclave. There is a need to shift away from the traditional nomination-based procurement focused mostly on the public sector to a more competitive pricing model where both the public and private sector can compete for orders, he said, adding this approach is already being implemented for shipbuilding and recently for the AMCA (advanced medium combat aircraft) project. The defence ministry has declared 2025 as the year of reforms aimed at transforming the military into a technologically advanced, combat-ready force capable of tackling new challenges. The nine areas identified by the defence ministry for focused intervention include simplifying weapons buying procedures, setting up of integrated theatre commands for the best use of the military's resources to fight future wars, and new domains such as cyber and space. On May 29, the chief of the air staff Air Chief Marshal AP Singh put the spotlight on the armed forces' agonising wait for new weapons and systems, saying he could not recall a single instance of a project being executed on time, in what was seen as a wake-up call for the country's defence production sector. 'Timelines are a big issue,' Singh said at the time.
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Business Standard
19-06-2025
- Business
- Business Standard
Panel formed to review Defence Acquisition Procedure 2020: Defence ministry
A committee led by the Director General (Acquisition) has been established to conduct detailed deliberations with stakeholders for a full review of the Defence Acquisition Procedure (DAP) 2020, the Ministry of Defence announced on Thursday. The objective of the review is to enhance the pace of armed forces modernisation and meet national security requirements more efficiently, while also aligning the acquisition framework with central government policies supporting self-reliance in defence manufacturing. Aligning DAP with Atmanirbhar Bharat and Make in India The ministry noted that the review aligns with the government's broader goal of achieving Aatmanirbharta and promoting the Make in India initiative. Originally launched in September 2020 by Defence Minister Rajnath Singh, DAP 2020 was intended to bolster India's domestic defence manufacturing capabilities and position the country as a global production hub. Following the declaration of 2025 as the 'Year of Reforms,' the defence ministry initiated this 'comprehensive review' to reflect current government priorities. The newly formed committee includes senior defence ministry officials, industry stakeholders, and representatives from academia. Former DG (Acquisition) and retired IAS officer Apurva Chandra has been appointed as Principal Advisor to the committee. The committee has already begun consultations and has invited stakeholder suggestions by 5 July. Objectives of the review The review aims to: Support Aatmanirbharta by promoting indigenous technology and locally designed systems Foster Make in India through manufacturing partnerships, joint ventures, and technology transfers Attract foreign OEMs by aligning procedures with FDI norms Establish India as a hub for global defence manufacturing and MRO (Maintenance, Repair, and Overhaul) The revised framework is expected to support defence start-ups, innovators, and private players to integrate local technologies and strengthen India's R&D ecosystem. Feedback sought on key reforms The ministry has sought public input on areas including: Procedural streamlining and ease of doing business Trial and post-contract protocols Fast-track acquisitions Categorisation improvements Adoption of emerging technologies such as artificial intelligence Language clarity and procedural transparency in the DAP Background: DAP evolution since 2002 India's defence procurement framework dates back to 2002 and has been revised periodically to boost domestic capacity. In 2019, then Defence Minister Rajnath Singh approved the formation of the Main Review Committee under Apurva Chandra to draft the current DAP 2020. Following extensive consultation, DAP 2020 came into force on 1 October 2020, incorporating feedback from a broad spectrum of stakeholders.
India Today
19-06-2025
- Business
- India Today
Government reviews defence acquisition procedure 2020 to boost self-reliance
In line with the government's declaration of 2025 as the 'Year of Reforms', the Ministry of Defence (MoD) has initiated a comprehensive review of the Defence Acquisition Procedure (DAP) 2020. The move aims to align the acquisition framework with the Government of India's current policies and initiatives, particularly those focusing on self-reliance and technological advancement.A Committee led by the Director General (Acquisition) has been formed to undertake extensive deliberations with all stakeholders. The panel includes senior officers from the MoD, along with representatives from the defence industry and strengthen the review process, the Ministry has appointed Shri Apurva Chandra, a 1980 batch former IAS officer and former Director General (Acquisition), as the Principal Advisor to the Committee. The panel has already begun consultations and has invited suggestions from stakeholders. The review of DAP 2020 seeks to:Ensure the timely fulfilment of operational requirements and modernisation goals of the Armed Forces to uphold national acquisition procedures with key government initiatives, with the aim of:a. 'Achieve Aatmanirbharta (Self-Reliance) by promoting technology infusion through indigenously designed and developed systems.'b. 'Enable 'Make in India' by promoting defence manufacturing in India through the facilitation of Joint Ventures and Transfer of Technology to the private sector, encouraging foreign original equipment manufacturers via FDI alignment, and establishing India as a global Defence manufacturing and maintenance, repair and operations hub.'advertisementc. 'Promote Design and Development in both public and private sectors, with a focus on Startups, Innovators, and the Private Defence Industry for indigenous technology infusion.'The Committee is specifically seeking feedback on three key areas:Policy and procedural reforms to streamline the acquisition process, including categorisation, ease of doing business, trial procedures, post-contract management, fast-track mechanisms, and integration of emerging technologies like Artificial refinements aimed at eliminating ambiguity, resolving inconsistencies, and enhancing clarity within the DAP other relevant issues that stakeholders believe should be addressed in the upcoming Watch
Hindustan Times
19-06-2025
- Business
- Hindustan Times
Defence ministry sets up panel to steer review of arms-buying rules
NEW DELHI: The defence ministry on Thursday said it has set up a high-powered committee, headed by the director general (acquisition), to steer a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 for speedy modernisation of the armed forces and boosting self-reliance in the critical sector. The panel includes senior officers from the ministry, representatives from the defence industry and academia. 'Following the declaration of 2025 as the 'year of reforms', the defence ministry has initiated a comprehensive review of the DAP 2020 to align it with existing government policies and initiatives. A committee headed by the director general (acquisition) has been constituted to carry out extensive deliberations with all stakeholders,' the defence ministry said. The panel has begun consultations with the stakeholders and invited suggestions from them by July 5. The aim of the review, the ministry said, is to meet the operational requirements and modernisation needs of the armed forces in a timely manner to ensure national security and achieve 'atmanirbharta' goals by promoting technology infusion through indigenously designed and developed systems. It also seeks to boost the Make-in-India initiative by promoting defence manufacturing through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign original equipment manufacturers to invest in the country and establish India as a global defence manufacturing and MRO (maintenance, repair and overhaul) hub, the ministry said in a statement. Another goal is to 'promote design and development in both public and private sectors, with a focus on startups, innovators, and the private defence industry for indigenous technology infusion.' The panel was formed weeks after India launched Operation Sindoor in the early hours of May 7 and struck terror and military installations in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror strike in which 26 people were shot dead. It triggered a four-day military confrontation with Pakistan before the two sides reached an understanding on stopping all military action on May 10. Indian forces deployed several indigenous weapons during the clash. The panel has sought suggestions from stakeholders on a raft of issues including policy/procedural changes to streamline the acquisition processes, ease of doing business, conduct of trials, post-contract management, fast-track procedures, adoption of new technologies including artificial intelligence, and language improvements to eliminate ambiguity and enhance procedural clarity in the DAP. On May 30, defence secretary Rajesh Kumar Singh told a defence conclave that DAP 2020, the document that spells out the complex procurement process, was being revisited to reflect current realities. He said the government was taking steps to shorten the weapon procurement cycle and has already cut it by more than a year. 'The defence ministry has already, in the year of reforms, slashed the timelines for some of the processes in the procurement cycle. This would save about 69 weeks overall in the process timeline,' he said at the event. There is a need to shift away from the traditional nomination-based procurement focused mostly on the public sector to a more competitive pricing model where both the public and private sector can compete for orders, Singh said, adding this approach was being implemented for shipbuilding and recently for the AMCA (advanced medium combat aircraft) project. The defence ministry has declared 2025 as the year of reforms aimed at transforming the military into a technologically advanced, combat-ready force capable of tackling new challenges. The nine areas identified by the defence ministry for focused intervention include simplifying weapons buying procedures, setting up of integrated theatre commands for the best use of the military's resources to fight future wars, and new domains such as cyber and space. On May 29, the chief of the air staff Air Chief Marshal AP Singh put the spotlight on the armed forces' agonising wait for new weapons and systems, saying he could not recall a single instance of a project being executed on time, in what was seen as a wake-up call for the country's defence production sector. 'Timelines are a big issue,' Singh said at the time.
