Defence Postures

New procurement policy is well-meaning, with a clear focus on indigenisation. Test will be in the execution.

  1. Defence Minister announced the contours of the long-awaited new defence procurement procedure (DPP)
  2. V.K. Aatre Committee, formed to recommend policy on selection of strategic partners in defence manufacturing, is expected to submit its report this week.
  3. The policy is critical for the business development plans of India’s top private defence manufacturers.
  4. The defence ministry has accepted 90 per cent of the recommendations made by Dhirendra Singh committee.
  5. Two major highlights of the new DPP – the creation of a new category called the “IDDM” or indigenously designed, developed and manufactured platforms.
  6. This will get top priority for buying equipment and incentivise domestic manufacturing .
  7. Raising of the value of contracts for 30 per cent offsets from Rs 300 crore to Rs 2,000 crore.which satisfies foreign vendors.
  8. Policy on blacklisting of defence suppliers and authorised defence agents will also be unveiled along with the DPP.
  9. Those policies are critical to creating a well-defined landscape for the operation of both Indian and foreign defence manufacturers.
Defence Sector – DPP, Missions, Schemes, Security Forces, etc.
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