01 October 2020

Update: India unveils new defence acquisition procedure

by Jon Grevatt

India unveiled on 28 September its new policy for military procurement and defence offsets.

The Ministry of Defence (MoD) in New Delhi said that the Defence Acquisition Procedure (DAP) 2020 will support its drive to spur indigenous capability development and achieve self-reliance: targets that have been afforded higher priority in the wake of the Covid-19 crisis.

The MoD said the new policy, which replaces the Defence Procurement Procedure (DPP) that was introduced in the early 2000s, is applicable from 1 October and has been shaped by input from a cross-section of stakeholders including government, industry, and think-tanks. Drafts of the policy were issued by the MoD earlier this year.

India has updated its defence procurement policy and related offsets requirements. Offset programmes currently under way in India include the local production of BAE Systems’ M777 lightweight howitzers (pictured). (BAE Systems)

Key aspects of the DAP 2020 include enhanced requirements for local content in defence production projects, greater emphasis on local preference in procurement decisions as well as new provisions for trial procedures, leasing, and the procurement of information and communications technologies (ICT).

The new defence offset guidelines put less emphasis on technology transfers and more on facilitating industrial collaboration between foreign original equipment manufacturers (OEMs) and their local partners. The MoD said the 2020 offset guidelines have also removed related obligations in procurements that are framed by government-to-government agreements such as those through the US Foreign Military Sale (FMS) mechanism.

Procurement

India unveiled on 28 September its new policy for military procurement and defence offsets.

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