‘Prefer indigenous capabilities in def procurement’

To accommodate PM Narendra Modi’s ‘Make in India’ in Defence Procurement Procedure (DPP) circa 2015 – much awaited – Dhirendra Singh Committee report has proposed that the Buy (Global) provision be slowly transformed into Buy (Indian) and Make.

The report has suggested that the ministry prepare a database “to provide information on <g data-gr-id="22">competence</g> levels of indigenous industry (both in Public and Private sectors) and monitors how it climbs upward on the ladder…” The list of items would be from those of minor value. “including those produced in base workshops to major systems integrated platforms.”

<g data-gr-id="24">Dhiredra</g> Singh proposes, participants in the database would be across the spectrum from medium, small and <g data-gr-id="25">macro</g> enterprises to corporate conglomerates. “A decision flowchart on the mode of procurement would ensure that indigenous capabilities are given first preference,” the committee has clearly stated. It has also added that a single vendor situation has developed would not render the process invalid, if it meets the ‘qualitative requirements’ and if the price is not ‘prohibitive.’

Speculation was rife in the informed circles about how ‘Make in India’ mantra’ will be promulgated in the procedure document. Now if the ministry of defence (MoD) incorporates the proposal the same way prescribed by the committee, ‘Make in India’ will have the potential to show signs of fruition.

In a major move to also create transparency as opposed to abiding secrecy the ministry has practiced, the Singh committee has proposed that the <g data-gr-id="23">defence-industrial</g> companies be made a part of the drafting of Technology Perspective and Capability Roadmap (TPCR) and the Preliminary Service Quality Requirement (PSQR).

The private corporate representatives should also be allowed to attend Defence Production Board and the Defence R&D Board. Modern technologies will be infused in the defence public sector units (DPSUs). They should also have their structures reworked and managerial changes made in line with global standards.