On New Defense Procurement Policy

The new Defence Procurement Policy will focus on domestic defence industry and make the acquisition process speedier.

  • The Policy will grant legal status to various defence agents which were given permission by DPP 2001. However, only a few had formally registered as there was lack of clarity on various rules and no scrutiny. The new DPP requires all foreign firms to declare fees of such agents with no room for any commissions or middlemen. New DPP will also review all the black-listed armament firms taking care of operational needs of the military.
  • Moreover, the widespread bans have been highly detrimental to the growth of armed forces. The current times are highly critical with rising defence budgets of China and growing military equipment of Pakistan with misuse of US economic aid. India needs immediate access to technology and state of the art military equipment. All this has been hindered due to sweeping bans imposed to stop scandals like Agusta Westland.
  • Furthermore, there is emphasis on revamping domestic production with a tightening of performance of DRDO and other PSUs engaged in defence.
  • The export norms are relatively relaxed to help boost the domestic defence industry. There is a stress on increasing private sector involvement in manufacturing of defence equipment to bring India closer to defence manufacturing base which will match its security needs. The proposal to bring Border Roads Organisation under Ministry of Defence which will lay a special emphasis on strategic roads along international borders to increase connectivity to vulnerable areas.

Thus, government is faced with twin challenge of speeding the process along with keeping it clean.