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Reviewing Defence Procurement Procedure

  • 19 Aug 2019
  • 2 min read

The Defence Minister has constituted a committee under the chairmanship of Director General (Acquisition) to review the Defence Procurement Procedure (DPP) 2016 and Defence Procurement Manual (DPM) 2009.

  • The DPP contains policies and procedures for procurement and acquisition from the capital budget of the Defence Ministry in order to modernise the Armed Forces including the Coast Guard.
    • The DPM contains principles and procedures relating to procurement of goods and services for the Defence Services, organisations and establishments.
  • The Committee will revise and align the procedures with the aim of ensuring seamless flow from asset acquisition to life cycle support and strengthening the ‘Make in India’ initiative of the Government.
  • The terms of reference include:
    • Revising the procedures to remove procedural bottlenecks and hasten acquisition;
    • Align and standardise the provisions to optimise life cycle support for equipment,
    • Simplify policy and procedures to facilitate greater participation of the industry and develop robust Defence industrial base.
    • Wherever applicable, examine and incorporate new concepts, such as life cycle costing, life cycle support, performance based logistics, lease contracting, codification & standardisation.
    • Setting up provisions to promote Indian start-ups and Research & Development.
    • Any other aspect which will contribute towards refining the acquisition process and support the ‘Make in India’ initiative.
  • The Committee has been given six months to submit its recommendations.

Source: PIB

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