Defense Acquisition Procedure – 2020 is unveiled by Union Government

will empower the Indian domestic industry through Make in India initiative

• Defense Ministry has unveiled the Defense Acquisition Procedure (DAP) – 2020
  in New Delhi on September 28 – 2020
• It aims of turning India into a global manufacturing hub under the Make In
  India Initiative
• It has adequately included provisions to encourage FDI to establish
  manufacturing hubs both for import substitution and exports

Salient provisions of guidelines

• The Offset guidelines have been revised, Under the new offset guidelines,
  preference will be given to manufacture of complete defense products over
  components
• The new DAP also protect the interests of Indian domestic industry
• The categories including the Buy(Indian-IDDM), Make I, Make II, Production
  Agency in Design & Development, OFB/DPSU and SP model will be exclusively
  reserved for Indian Vendors
• This, it meets the criteria of Ownership and Control by resident Indian citizens
• It Notify a List of Weapons/Platforms for Ban on Import
• Request For Information (RFI ) stage has been introduced that will explore
  willingness of the prospective foreign vendors in order to progressively
  undertake manufacture and setup an indigenous eco system

National specific provisions

• New Category of Buy (Global – Manufacture in India) has been added that
  incorporates ‘manufacture of either the entire or a part of the equipment
  including the spares, assemblies, sub-assemblies and Maintenance.
• Contractual Enablement has been incorporated that optimizes Life Cycle
  Support costs and system enhancements through indigenous eco system
  incorporated.
• FDI in Defense Manufacturing- It has incorporated new category ‘Buy (Global –
  Manufacture in India)’ toencourage foreigners to setup ‘manufacturing or
  maintenance entities’ through its subsidiary in India .
• Time Bound Defense Procurement Process and Faster Decision Making PMU be
  set up to facilitate obtaining advisory and consultancy support to streamline
  the Acquisition process.
• Thus, the DAP 2020 is an enabler and industry friendly procedure to build a
  confidence and meet aspirations of stakeholders across the spectrum

Other key details of the Procedures

• The Defense Acquisition Procedure (DAP) 2020 will be applicable with effect
  from October 1, 2020.
• The formulation of DAP 2020 has been done over more than one year,
  incorporating comments and suggestions from a wide spectrum of stakeholders
  as under
• The procedure has been aligned with the government’s vision of creating
  Atmanirbhar Bharat and empowering the Indian domestic industry through the
  Make in India initiative with the ultimate aim of turning India into a global
  manufacturing hub
• With the announcement of the new Foreign Direct Investment policy, DAP 2020
  has adequately included provisions to encourage FDI to establish
  manufacturing hubs both for import substitution and exports while protecting
  the interests of the Indian domestic industry
• As part of the Defense Reforms announced in the Atmanirbhar Abhiyan, setting
  up of a PMU has been mandated to support contract management
• The PMU will facilitate obtaining advisory and consultancy support in specified
  areas to streamline the acquisition process
• No repetition of inspections will be done especially during the acceptance of
  equipment
• Third-Party Inspections will also be carried out
• Peculiar issues related to the procurement of ICT intensive equipment especially
  of Interoperability & Built-in Upgradability, enhanced security requirements
  and change management have been included

Pic courtesy : affairscloud.com