(a) whether the Government is continuing the rate purchase system for goods in the defence
forces;
(b) if so, the details thereof;
(c) whether the Public Sector Undertakings have been given any preference over private
enterprises on such purchases; and
(d) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF DEFENCE (SHRI A.K. ANTONY)
(a) to (d): The purchase of goods for defence forces is governed by Defence Procurement
Manual (DPM) for revenue procurement and Defence Procurement Procedure (DPP) for capital
acquisitions. DPM and DPP provide for purchases against a Rate Contract (RC). An RC is
an agreement between the purchaser and the supplier to supply stores at specified prices
during the period covered by the contract. Rate contracts for general nature items are
concluded by the Director General of Supplies & Disposal (DGS&D) and the same are made use
of by the different wings of the defence forces based on their requirements. Further, RCs
are also entered into by the procurement wings of the defence forces for their specific
requirements. Purchases from Public Sector Undertakings (PSUs) are done as per the policy
laid down by the Government from time to time and as per the requirements of defence forces.