DAC: Procurement from Start-ups

March 24, 2022

For the first time, 14 items which are worth Rs 380.43 crore have been cleared for procurement from Innovations for Defence Excellence (iDEX) start-ups by the Defence Acquisition Council (DAC). The Indian Navy, Army, and Air Force will be procuring all these items.

Overview:

Approval has also been granted by the DAC for a new and simplified procedure so that procurement from MSMEs and iDEX start-ups can be fast-tracked.
As per the new procedure, the procurement cycle will be of 22 weeks.
In the 2022 Defence Acquisition Procedure, suitable incorporations will be made.
Approval was also given by the DAC for the procedure being made simple for the projects under the Make-II category. This will help in bringing down the time taken for the prototypes to be developed to the signing of the contract in Make-II projects.
The Acceptance of Necessity (AoN) for Capital Acquisition for the armed forces was also accorded by the DAC and this amounts to Rs 8,357 crore.
According to the DAC, the armed forces will be looking to acquire all their necessary requirements indigenously and imports will be done only during an exceptional case.
Under the AoN for Capital Acquisition accord, Light Vehicles GS 4X4, Night Sight (Image Intensifier), GSAT 7B Satellite, and Air Defence Fire Control Radar (Light) will be procured.

How many items will be procured by the end of the year?

About 25 to 40 items will be ready for procurement by the end of the year after they are successfully prototyped by the iDEX start-ups.

About iDEX

PM Modi launched the iDEX programme in 2018 with the aim of fostering innovations and incorporating advanced technologies in the country’s Armed Forces. The iDEX looks to promote technological development and innovations in the Defence and Aerospace sectors through the engagement of MSMEs, individual innovators, start-ups, R&D institutes, etc.

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