Parrikar unveils Defence Procurement Procedure

Defence Minister Manohar Parrikar on Monday unveiled the much-awaited Defence Procurement Procedure, saying that it would ensure transparency and speed in acquisition process and boost the ‘Make in India’ initiative to reduce dependence on exports.

“The Defence Procurement Procedure (DPP) can push the agenda of’Make in India’ and India’s target of achieving defence industry network,” Parrikar said at the inauguration of four-day Defence Expo in Betul-Naqueri village, 50 km from Panaji.

The DPP has been loaded online on the Defence Ministry’s website and the hard copy would be made available after 15 days. Parrikar said some concerns of foreign companies would be addressed through this policy in the next three to four months. The new policy has introduced an Indian Designed, Developed and Manufactured (IDDM) category, which will benefit local units, he said.

“We have increased the Foreign Direct Investment (in Defence sector) to 49 per cent, which will be through automatic route,” he said.

Parrikar said defence export clearances are to be granted online. He said the policy will also include ‘Start-up India’ initiative. Technology is changing every year and India has the capability to use it in defence production, he observed.

“We expect that new policy will make the world take advantage of technological revolution across India,” he said.

Railways Minister Suresh Prabhu, AYUSH Minister Shripad Naik, MoS for Defence Rao Inderjit Singh and Goa Chief Minister Laxmikant Parsekar were present at the function.

Meanwhile, Parrikar admitted the pace of negotiation with France for 36 Rafale jets was “not enough” but hoped it will be concluded “very soon”, nearly a year after a government-to-government deal for the multi-medium role combat aircraft was announced. 

He brushed aside the recent statement of Vice Chief of Air Staff BS Dhanoa, slated to be there next air chief, that the Indian Air Force (IAF) does not have the numbers to fight a two-front war with China and Pakistan.

“We are definitely very serious about the Rafale deal. And it is definitely moving though I agree that the speed is not enough,” Parrikar told mediapersons here.