Centre to implement new defence procurement policy from April 2

The Centre will soon notify the much debated new defence procurement policy (DPP) by next month and it will be effective from April 2. The defence minister Manohar Parrikar said the DPP will give first priority to the indigenous manufacturers under the Make In India initiative but it won't be a mandatory condition. He made it clear that new policy will ensure the modernisation of defence forces. 

 

Parrikar at the Make In India Week venue said, "The DPP will have a new category of Indigenously Designed Developed and Manufactured (IDMM) as the most preferred category for procurements. It aims to boost domestic private and small scale industry. The government promises to make the defence market more lucrative for Indian industry.'' Further, the new DPP  will lay emphasis on reducing delays in procurements by eliminating repetitive procedures.

 

Moreover, the minister said the government will include skill development in the guidelines to be issued in next two months for future offset."This is necessary as over one lakh skilled persons will be required in view of proposed increase in the production of defence aircraft and helicopters in the country. Even though there are large number of youths, who need job, they lack necessary skill set and it is similar to starvation amongst plenty,'' he added.

 

Parrikar said during the one and half years since the BJP government assumed power he has attempted to bring in transparency especially in the defence procurement and thereby tackle the corruption. ''Recently, the tenders were opened for three defence items in which one was quoted 20% and second for 50% which were were below what was earlier prevailed in some cases,'' he noted.

 

Parrikar said there was a resistance of Indian Air Force to procure 20 Tejas single-seat, single-engine, lightweight, high-agility supersonic fighter aircraft but now order for 100 has been placed.''Tejas was travelled to Baharin to participate in the air show  and it has been accepted by the world. When our participation was accepted some withdrew to participate in the air show,'' he informed.

 

The minister said  that if the system is cleaned the defence expenses can be reduced by 25% without sacrificing the quantity, quality and the requirement of forces. ''You can save money by better discounts,'' he viewed.

 

Parrikar said that the government has issued 370 licenses and signed 40 to 50 MoUs in the defence sector. 

 

On the Indian economy especially in the wake of Make In India initiative, Parrikar said the economy is expected to grow double digit at least by 8% next year against the prediction of 7.5%.