Non-Subscriber Extract
Indian MoD introduces updated defence procurement procedures
By Jon Grevatt
06 August 2008
India's Ministry of Defence (MoD) has introduced updated defence procurement procedures (DPP 2008) that are focused on accelerating acquisition processes and providing greater flexibility to vendors meeting offset conditions.
The DPP 2008 - an update of the 2006 version - is also designed to ease licensing conditions for private companies as well as increase transparency in platform and system field trials.
Formally introducing the policy on 1 August, Defence Minister A K Antony indicated that the priority of the DPP 2008 - which becomes operational on 1 September - was to address the speed of India's existing military acquisition procedures.
He said: "Armed forces all over the world are in a process of speedy modernisation and restructuring. India cannot lag behind in this trend. We want a highly modern armed force, which will be able to respond quickly and which will be able to meet any challenges."
Among the measures designed to accelerate acquisitions is the plan to grant the army, navy and air force powers to sanction capital spending up to INR500 million (USD11 million).
Additionally, the DPP 2008 outlines a two-year timeframe for issuing a request for proposals (RfP) once a particular platform has been selected. It also states that vendors will be informed in advance before an RfP is issued to provide them with adequate "lead time to prepare their responses".