Parrikar to implement revised DPP in April

Giving a boost to The Make in India campaign, which also focusses on revitalizing indigenous manufacturing in the defense sector, India’s Defense Minister Manohar Parrikar, has asked the three service headquarters to suggest revisions in the “make” procedures of the Defense Procurement Policy (DPP) for creating easier procedures for local manufacturing.

The “make” procedures have been given to the Army, Navy and Air force for their comments. Directors across these services are to study the draft, and come up with inputs. The draft procedures are likely to be submitted soon, as the Mr Parrikar is aiming to finalize and implement the policy by the end of April.

Under Mr Modi’s Make in India campaign, reworking the procedures have been given top priority. In the past, the Defense Acquisition Council (DAC), which is led by the Defense Minister, has cleared many high-profile projects but the industry is waiting for the procedures to be updated, to have a more proactive participation in defense projects.

The draft procedures which are being scrutinized by the service headquarters are reportedly to be split in four subcategories-A, B, C and D- each to indicate the percentage funding by the industry and government, as well as the monetary support by the government for research and development. It would make it easier for industries to identify their choice of project for involvement.

The “make” category is a part DPP-2013. The Defense Ministry believes that the key to indigenizing the production of complex defense systems, and boosting local supply (reducing defense imports has a strategic and economic benefit) is to rework these “make” procedures. India has the dubious distinction of being the largest arms importer in the world and revitalizing local manufacturing is the need of the hour. Engagement with private players supported by positive government policies is much needed. With the new DPP, preferring purchase of Indian made equipment under conducive environment, this may soon be a reality.

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