Hailing the thrust on greater indigenisation in the new Defence procurement policy, India Inc termed it a "path-breaking" move which will encourage innovation, boost job creation and promote merit driven acquisition.
The much-awaited Defence procurement policy was unveiled by the government today in Goa with an aim to ensure transparency, fast track acquisition process and give a push to Make in India initiative.
To be applicable from April, the procurement policy lays the roadmap on how India, the world's largest arms importer, will acquire defence equipment in the future.
"By introducing and according the highest priority to indigenously designed, developed and manufactured procurement, DPP 2016 would definitely spur more design development activities within the country and contribute towards the much higher indigenous content and finally creating a vibrant domestic defence industrial base," CII Director General Chandrajit Banerjee said.
DPP has included a new category to acquire weapons--IDDM (Indigenously Designed, Developed and Manufactured). The IDDM will be the first preferred category of preference.
"The categorization of IDDM as the first preferred procurement category instills faith and belief on Indian industries' ability towards meeting the requirement of defence forces through indigenous innovations," Ficci Secretary General A Didar Singh said.
The Defence Procurement Procedure(DPP)-2016 announced by Defence Minister Manohar Parrikar, however, did not contain a key chapter on the proposed strategic partnership. Parrikar said it will take another two-three months for finalisation of this model.
"These steps are going to help Indian Industry build the much needed Defence and Aerospace Industrial base in country. We are awaiting for final version of DPP 2016 which will include appendices and chapter on strategic partnership," Jayant D Patil, Chairman, Ficci-Defence and Aerospace Committee said.
The new policy also allows the Defence Acquisition Council to take a "fast-track" route to acquire weapons, something which was limited to only the armed forces till now.
In a bid to cut down on time taken for acquisition process, it mandates that all AONs (Acceptance of Necessity) of a particular platform will be valid for only six months as against the 12-month deadline now.
