Correct option is B
The correct answer is (b) Eliminating all private sector participation in defence manufacturing
Explanation:
The Defence Acquisition Procedure (DAP) 2024 is an evolution of the previous DAP 2020, specifically designed to align with the "Aatmanirbhar Bharat" (Self-Reliant India) initiative.
Contrary to the statement in option (b), a primary goal of the DAP is to increase private sector participation, not eliminate it. The policy encourages Micro, Small, and Medium Enterprises (MSMEs) and startups to enter the defence supply chain.
The procedure focuses on streamlining procurement by reducing the "Acceptance of Necessity" (AoN) to "Contract Signing" timelines, aiming to provide the armed forces with modern equipment faster.
It emphasizes Indigenisation, requiring higher percentages of Indigenous Content (IC) in various categories like "Buy (Indian-IDDM)" (Indigenously Designed, Developed and Manufactured).
The DAP provides a framework for Global OEMs (Original Equipment Manufacturers) to set up manufacturing facilities in India, often through Joint Ventures with Indian firms, to facilitate technology transfer.
Information Booster:
The DAP 2024 includes specific provisions for "Make in India" and "Design in India," prioritizing domestic sourcing over imports to reduce foreign exchange outflow.
It introduces "Innovation" categories where the iDEX (Innovations for Defence Excellence) framework is integrated to allow the military to procure cutting-edge tech from tech-startups.
A key feature is the "Buy (Global - Manufacture in India)" category, which mandates that a foreign vendor must manufacture the entire or a portion of the equipment in India through its subsidiary or an Indian partner.
The policy also addresses Life Cycle Support, ensuring that Indian firms are capable of maintaining and repairing the equipment throughout its operational life, further reducing dependence on foreign repair hubs.
Additional Knowledge:
Streamlining timelines (Option a): The government has introduced "Fast Track Procedure" (FTP) for urgent operational requirements and simplified the "Request for Proposal" (RFP) process to avoid bureaucratic delays.
Indigenisation requirements (Option c): Minimum indigenous content has been steadily increased; for example, in some categories, it is now mandatory to have at least 50% to 60% IC to qualify for a contract.
Collaboration with Global OEMs (Option d): The DAP encourages "Strategic Partnerships" where Indian private companies act as systems integrators for platforms like submarines, fighter jets, and tanks in collaboration with global giants.
DAP Evolution: The first such procedure was the Defence Procurement Procedure (DPP) 2002, which has been revised multiple times (2005, 2006, 2008, 2011, 2013, 2016, and 2020) to reflect the changing security landscape and industrial capabilities of India.