{"id":2708,"date":"2020-09-30T16:23:06","date_gmt":"2020-09-30T10:53:06","guid":{"rendered":"https:\/\/www.classiciasacademy.com\/blog\/?p=2708"},"modified":"2020-09-30T16:23:06","modified_gmt":"2020-09-30T10:53:06","slug":"defence-acquisition-procedure-2020-unveiled","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/defence-acquisition-procedure-2020-unveiled\/","title":{"rendered":"Defence Acquisition Procedure 2020 Unveiled"},"content":{"rendered":"\n

In\nNews<\/h3>\n\n\n\n

The\nMinistry of Defence Shri Rajnath Singh has unveiled the new Defence Acquisition\nProcedure 2020 (DAP 2020).<\/p>\n\n\n\n

In-Detail\n<\/h3>\n\n\n\n

The\nDefence Procurement Procedure was first promulgated in the year 2002. Since\nthen, it is revised periodically. <\/p>\n\n\n\n

The\ncurrent updated procedure was formulated by Main Review Committee under\nthe chairmanship of Shir Apurva Chandra and was accepted by the Defence\nMinistry.<\/p>\n\n\n\n

The new\nprocedure will come into effect from 1st October 2020.<\/p>\n\n\n\n

DAP 2020\naligns with the government\u2019s Atmanirbhar Bharat Abhiyaan, empowering the Indian\ndomestic industry and make India a global manufacturing hub.<\/p>\n\n\n\n

There are\nspecific provisions for encouraging FDI, import and export substitutions while\nprotecting the interests of the Indian domestic industry.<\/p>\n\n\n\n

Some\nReforms Brought by DAP 2020<\/p>\n\n\n\n

There\nwill be a list of weapons\/platforms which will be banned from importing. This\nis to promote the manufacture of these weapons\/platforms domestically.<\/p>\n\n\n\n

Under the\nindigenisation of the imported spares clause, some new procedures have been\nincluded. <\/p>\n\n\n\n

  1. At the request for information stage, the\nprospective foreign vendors\u2019 willingness to progressively undertake\nmanufacturing within the country through the development of the indigenous\necosystem for spare\/sub-components will be explored.<\/li>
  2. A\nnew category of Buy (Global – Manufacture in India) necessitates the\nmanufacture of the entire equipment\/part of it or spares\/assemblies\/Maintenance,\nRepair and Overhaul (MRO) facility through a subsidiary in India.<\/li>
  3. FDI\nin the new Buy (Global – Manufacture in India) necessitates OEMs to set up\nmanufacturing\/maintenance unites in the country through a subsidiary.<\/li>
  4. Trial\nprocedures for the weapons and systems have been simplified and are based on\nprinciples of transparency and equal opportunities to all. The procedures\nfoster competition. <\/li>
  5. To\npromote Ease of Doing Business, the DAP 2020 has simplified procedures and\ndelegated processes making the procurement process industry-friendly. <\/li>
  6. There\nis an overall enhancement of indigenous content in defence procurement across\ncategories.<\/li><\/ol>\n\n\n\n
    \n Sr\n No<\/strong>\n <\/td>\n Category<\/strong>\n <\/td>\n DPP\n 2016<\/strong>\n <\/td>\n DAP\n 2020<\/strong>\n <\/td><\/tr>
    \n 1\n <\/td>\n Buy\n (Indian-IDDM)\n <\/td>\n Min 40%\n <\/td>\n Min 50%\n <\/td><\/tr>
    \n 2\n <\/td>\n Buy\n (Indian)\n <\/td>\n Min 40%\n <\/td>\n Indigenous design \u2013 Min 50%\n Otherwise\n \u2013 Min 60%\n <\/td><\/tr>
    \n 3\n <\/td>\n Buy\n & Make (Indian)\n <\/td>\n Min 50%\n of Make\n <\/td>\n Min 50%\n of Make\n <\/td><\/tr>
    \n 4\n <\/td>\n Buy\n (Global \u2013 Manufacture in India)\n <\/td>\n –\n <\/td>\n Min 50%\n of Buy plus Make\n <\/td><\/tr>
    \n 5\n <\/td>\n Buy\n (Global)\n <\/td>\n –\n <\/td>\n Min 30%\n for Indian vendors\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    End to\nOffset Clause<\/h3>\n\n\n\n

    Offset\nclause in defence procurement when done through Inter-government Agreement\n(IGA), government-to-government or in a single vendor situation has been done\naway.<\/p>\n\n\n\n

    Earlier,\nthe offset clause required a foreign vendor to invest a part of contract value\nin India.<\/p>\n\n\n\n

    But, offsets\nwill continue in the multi-vendor competitive procurement contracts. <\/p>\n\n\n\n

    This\nmeans offsets will be reduced substantially.<\/p>\n\n\n\n

    In the\ndeal to buy 36 Rafael fighter jets under the India-French government agreement,\na 50% offset clause has been included. <\/p>\n\n\n\n

    But, the\nnew rules do not apply retrospectively, thus not impacting the existing\ncontracts. <\/p>\n\n\n\n

    Leasing\n<\/h3>\n\n\n\n

    Leasing\nor asset acquisition for a limited period has been introduced as a new chapter\nin the DAP 2020. <\/p>\n\n\n\n

    This is\nfor the first time government is allowed to hire equipment from domestic or\nforeign vendors.<\/p>\n\n\n\n

    Under the\nMake & Innovation, a new category Make III for indigenous manufacturing of\nequipment, platforms or spare, assemblies, sub-assemblies for import\nsubstitution has been introduced. <\/p>\n\n\n\n

    Conclusion<\/h3>\n\n\n\n

    These and\nmany other changes in the DAP 2020 make indigenisation of defence manufacturing\nmore realistic. The DAP 2020 aligns with the government\u2019s aim to make India\nself-reliant in defence manufacturing. <\/p>\n","protected":false},"excerpt":{"rendered":"

    In News The Ministry of Defence Shri Rajnath Singh has unveiled the new Defence Acquisition Procedure 2020 (DAP 2020). In-Detail The Defence Procurement Procedure was [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[],"yoast_head":"\nDefence Acquisition Procedure 2020 Unveiled - UPSC Current Affairs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/defence-acquisition-procedure-2020-unveiled\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Defence Acquisition Procedure 2020 Unveiled - UPSC Current Affairs\" \/>\n<meta property=\"og:description\" content=\"In News The Ministry of Defence Shri Rajnath Singh has unveiled the new Defence Acquisition Procedure 2020 (DAP 2020). 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