Defence Acquisition Procedure 2020 | UPSC

Spread the love

Defence Acquisition Procedure 2020 | UPSC

Defence Acquisition Procedure 2020 | UPSC

      HEADLINES:

Raksha Mantri Shri Rajnath Singh unveils Defence Acquisition Procedure 2020;

      WHY IN NEWS:

New DAP incorporates several measures to boost domestic Defence industry and Make in India

MINISTRY? :-Ministry of Defence
SYLLABUS COVERED: GS 3: Defence

      LEARNING: 

For PRELIMS nothing much here except the committee name .

For MAINS this is a very important issue . These reforms can be masked in any type of question related to Make in India , Defence Sector and DRDO.

      ISSUE: 

Procedures simplified to reduce time delays and enhance ease of doing business

DEFENCE ACQUISITION PROCEDURE 2020

  • Raksha Mantri Shri Rajnath Singh today unveiled the Defence Acquisition Procedure (DAP) – 2020 in New Delhi.

The first Defence Procurement Procedure (DPP) was promulgated in the year 2002 .

  • Since then it has been revised periodically to provide impetus to the growing domestic industry .

AIM

DPP aim is to achieve enhanced self reliance in defence manufacturing.

COMMITTEE

  • Raksha Mantri had approved constitution of Main Review Committee under Chairmanship of DG (Acquisition) Shri Apurva Chandra in Aug 2019 for preparation of DAP-2020.
  • DAP 2020 will be applicable with effect from 01 October 2020.

FORMULATION

  • Formulation of DAP 2020 has been done over more than one year.
  • Incorporating comments/suggestions from a wide spectrum of stakeholders as under :-

Defence Acquisition Procedure 2020 | UPSC

  • DAP 2020 has been aligned with the vision of the Government  of Atmanirbhar Bharat.
  •  It is empowering Indian domestic industry through Make in India initiative.

The ultimate aim is turning India into a global manufacturing hub.

  • With the new Foreign Direct Investment policy announced,  DAP 2020 will encourage FDI to establish manufacturing hubs .

LIST OF REFORMS

NOTIFY A LIST OF WEAPONS FOR BAN ON IMPORT

  •  Relevant incorporation has been done in the DAP.
  • This will ensure that NO equipment as mentioned in the list is procured ex import post timelines notified.

INDIGENISATION OF IMPORTED SPARES

  • REQUEST FOR INFORMATION : RFI stage will explore willingness of the prospective foreign vendors to progressively undertake manufacture and setup an indigenous eco system at the spares/sub component level.
  • NEW CATEGORY FOR BUYING :  The new category incorporates manufacture of either the entire/part of the equipment or spares/assemblies etc. through its subsidiary in India.
  • CO-PRODUCTION THROUGH IGA : This enables establishment of co-production facilities through IGA achieving Import Substitution’ and reduce Life Cycle Cost.
  • CONTRACTUAL ENABLEMENT : Buyer’s Right to optimise Life Cycle Support costs and system enhancements through indigenous eco system incorporated.

FDI IN DEFENCE MANUFACTURING

  • With the announcement of new FDI Policy, suitable provisions have been incorporated like new category ‘Buy (Global – Manufacture in India)’ .

This is done to encourage foreign OEMs to setup ‘manufacturing/maintenance entities’ through its subsidiary in India.

  • On the other hand this will enabling requisite protections to domestic industry.

TIME BOUND DEFENCE PROCUREMENT PROCESS

  • As part of the Defence Reforms , setting up of a Project Management Unit (PMU) has been mandated to support contract management.
  • The PMU will facilitate obtaining advisory and consultancy support in specified areas to streamline Acquisition process.

EASE OF DOING BUSINESS

  • One of the key focus areas of the review was to implement Ease of Doing Business’.

Ease of doing business is the emphasis on simplification, delegation and making the process industry friendly.

SALIENT FEATURES OF DAP 2020

  • Reservation in Categories for Indian Vendors
  • Enhancement of Indigenous Content
  • Overall Enhancement in Indigenous Content (IC)
  • IC Verification
  • Indigenous Military Material 
  • Indigenous Software 
  • Rationalisation of trial and testing procedures
  • Inspections
  • Make & Innovation.
  • Design & Development
  • Industry Friendly Commercial Terms

      IASbhai WINDUP: 

  • DAP 2020 which has been formulated post interactions over a year, is an enabler & industry friendly procedure.

It is aligned with Government of India’s vision of Atmanirbhar Bharat & impetus to Make in India.

  • DAP 2020 document instills a confidence and will meet aspirations of stakeholders across the spectrum.
     SOURCES: PIB | Defence Acquisition Procedure 2020 | UPSC

 

DISCOVER MORE : DEFENCE

If you liked this article, then please subscribe to our YouTube Channel for Daily Current Affairs , Editorial Analysis & Answer writing video tutorials. You can also find us on Twitter and Facebook.


Spread the love

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

IASbhai will use the information you provide on this form to be in touch with you and to provide updates and marketing.