Question : New Defence Procurement Policy

(a) whether the Government is considering to adopt a new procurement policy that would define the level of indigenous content for defence equipment and give higher preference to local vendors in contracts;

(b) if so, the salient features of the aforesaid policy;

(c) whether the Government has indentified other defence equipments wherein the policy can be applied and if so, the details thereof;

(d) whether the Government has consulted various stakeholders before finalizing the new procurement policy and if so, the details thereof; and

(e) the other policy decisions taken by the Government to give the preference to the Indian vendors?

MINISTER OF STATE (SHRI SHRIPAD NAIK)
IN THE MINISTRY OF DEFENCE
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(a) to (e) : The extant Defence Procurement Procedure (DPP)-2016 under ‘Buy [Indian-Indigenously Designed & Developed Manufactured (IDDM)]’ category promotes indigenous defence manufacturing capabilities through private sector. The Strategic Partnership model has also been incorporated in DPP-2016 in May 2017.

The ‘Make’ procedures [Make-I & Make-II] of DPP-2016 promote self-reliance, wider participation of Indian Industry and provide impetus to MSME sector through indigenous development and upgrades to promote import substitution.

Technologies/equipment to be inducted by the Armed Forces are shared with Industry through the Technology Perspective and Capability Roadmap (TPCR)-2018.

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