The Ministry of Defence has given its final nod to the new Defence Procurement Procedure (DPP).
The decision was taken during a Defence Acquisition Council (DAC) — the highest decision making body on new procurement at MoD — meeting chaired by Defence Minister Manohar Parrikar.
The government will try to publicly declare the contents of the new DPP by March 28 and hopes to make it effective from April 2.
With the DPP, the Centre aims to fast-track acquisitions for the armed forces to maintain operational capabilities not just during war-time but also during peacetime.
The new DPP will also have provision for allowing the DAC to fast track the procedure by bypassing the Acceptance of Necessity (AON) process, in urgent cases like requirements in the Special Forces.
The Centre is also looking to put in a mechanism wherein even if a firm is blacklisted, the government can acquire crucial spare parts from that company if the acquisition of the main product had been sanctioned before the decision to blacklist.
The new DPP is expected to strongly push for the government’s Make in India initiative wherein indigenously designed and developed defence products with indigenisation content of at least 40 per cent is likely to be encouraged.
He said acquisitions worth close to Rs 3.12 lakh crore has been approved by the DAC since the Modi government took chrge in May, 2014. However, none of the projects have till date converted into contracts – due to a lack of clarity on various procurement issues.