The Defence Procurement Procedure (DPP), now known as the Defence Acquisition Procedure (DAP), is a guideline for acquiring military equipment in India. The Ministry of Defence (MoD) has issued the long-awaited Defence Acquisition Procedure 2020 (DAP 2020), effective from October 1, 2020. It replaces the previous version, the Defence Procurement Procedure 2020.
The Defence Procurement Procedure 2020 governs the acquisition of capital defence equipment and aims to further boost indigenous manufacturing of defence equipment. It will apply to all acquisition projects without a published Request for Proposal (RFP), including those in the pre-acceptance of Necessity (AoN) stage, those in the AoN stage, and those in the Make and Design & Development (D&D) stage.
Upon its inception in 2002, the primary objective of the Defense Procurement Procedure (DPP) was to streamline and expedite the acquisition process of military hardware for the Armed Forces. However, in 2016, changes were made to focus more on promoting self-sufficiency in defence production by prioritizing military systems developed within the country. The creation of the Project Management Unit aims to make operations and decision-making more efficient.
Now, preference will be given to manufacturers of complete defence goods rather than just components. The offset policy has also been adjusted to provide more incentives for fulfilling offset obligations through direct purchases, technology transfers, and foreign investment. Moreover, steps have been taken to simplify trials and testing processes, including avoiding redundant trials and inspections.
In September 2020, the Ministry of Defence introduced a new Defense Acquisition Procedure (formerly known as the Defense Procurement Procedure). which outlines the process for acquiring military equipment in India. It aims to balance several factors:
The primary purpose of the Defence Procurement Procedure is to establish smooth processes for defence procurement, with the overarching goal of achieving self-reliance in meeting the security needs of the Indian Armed Forces. This is to be accomplished by promoting the indigenous design, development, and manufacture of defence weapon systems and platforms on time, free from delays.
Number | Category of Procurement |
1. | Buy – Indian Designed, Developed and Manufactured (IDDM) |
2. | Buy – (Indian) |
3. | Buy and Make (Make Indian) |
4. | Buy and Make |
5. | Buy (Global) |
6. | Make |
India’s defence sector is undergoing a wave of reforms aimed at modernisation, self-reliance, and improved efficiency. Here’s a breakdown of some key areas of reform:
Military Transformation:
Enhancing Defence Procurement:
The DAP contains policies and procedures for procurement and acquisition from the capital budget of the MoD in order to modernise the Armed Forces including the Coast Guard. Background: The first Defence Procurement Procedure (DPP) was promulgated in 2002.
The aim of new Defence Procurement Procedure (DPP) is to ensure timely procurement of. military equipment, systems and platforms as required by the Armed Forces
The aim of the Defence Acquisition Procedure (DAP), erstwhile Defence Procurement Procedure (DPP), is to ensure timely acquisition of military equipment, systems and platforms as required by the Armed Forces in terms of performance, capabilities and quality standards, through optimum utilisation of allocated budgetary allocatations.
Types of procurement
Direct procurement. Direct procurement is the obtainment of goods, materials or services a business can use to generate profit through the production of an end-product or resale. ...
Indirect procurement.
Services procurement.
Goods procurement
Further, DPP is regularly reviewed and updated to reflect changes in security and technology. On the contrary, the DPM provides detailed procedures for procurement, from the conceptual stage to final acceptance.
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