The Defence Acquisition Procedure

Introduction Or Aim 

 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 resources. While enabling the same, DAP will provide for the highest degree of probity, public accountability,  transparency, fair competition and level-playing field. In addition, self-reliance in defence equipment production and acquisition will be steadfastly pursued as a focus of the DAP with  an ultimate aim to develop India as a global defence manufacturing hub.

Scope

(a) The DAP will cover all Capital Acquisitions other than Works and Land undertaken by the Ministry of Defence (MoD) and Service Headquarters (SHQ) both  from indigenous sources and ex-import, except for medical equipment. SHQ for the purpose of DAP would include HQ Integrated Defence Staff, Integrated HQ of the MoD (Army), Integrated HQ of the MoD (Navy), Integrated HQ of the MoD (Air Force) and the Indian Coast Guard. Defence Research and Development Organisation  (DRDO), Ordnance Factory Board (OFB) and Defence Public Sector Undertakings (DPSUs) will, however, continue to follow their own procurement procedure.

(b) In the event of enactment of new legislation or change or amendment or enforcement of any Act or Law or Policy, rules or regulations or guidelines of MoD  or Government of India or body such as Chief Vigilance Commission (CVC), which  becomes effective after the date of last amendment to this DAP, the same will automatically be deemed as replacement to the one referred to in this DAP.

Highlights

1.Buy (Global – Manufacturing in India) – This new feature mandates that the entire or part of the manufacturing procedure for equipment / spare parts / Maintenance or Repair must be conducted by the Indian subsidiary of foreign investors. 

2.Ease of Doing Business – Easier and faster facilitation of operations and decision making through the Project Management Unit; Preference is given to manufacturers producing complete defence products, rather than parts; Increase of multipliers in the offset policy with respect to direct purchase, TOTs and FDI to incentivise the discharge of offsets; Easing of trials and testing such as avoidance of duplicate trials, modification of the scope of trials, removing repeat inspections, etc.