What is Government Scheme for Defence Procurement Procedure?

The Defence Procurement Procedure is designed to ensure that military equipment, systems, and platforms, as needed by the Armed Forces, are procured in a timely manner in terms of performance capabilities and quality requirements, through the efficient utilization of the budgetary resources allocated. It is worth noting that the paper is not simply a procurement mechanism but also an opportunity to enhance the procurement mechanism’s efficiency to realize the' Make in India' vision in the defense sector.

What is Government Scheme for  Defence Procurement Procedure?
  1. What is the defense sector overview in recent times?

It is possible to access the Defense Sector Achievement Report covering policy initiatives, R&D, and other import areas on the link.

 

  1. Is there funding provided by the government for certain categories?

under the 'Make-I' sub-category, schemes require 90 percent government funding, released in a staggered manner and depending on the scheme's success, according to terms negotiated between MoD and the vendor.

 

  1. Are any incentives for MSMEs under Defence Procurement Procedure?

With some types of 'Make' goods intended exclusively for MSMEs, DPP 2016 offers great impetus for MSMEs.

 

  1. How are the capital acquisition schemes classified under the Defence Procurement Procedure?

'Invest', 'Buy and Make' and 'Make' are widely classified as capital acquisition schemes. The acquisition of defense equipment is classified as follows in the declining order of priority under this procedure: 1) Buy (Indian-IDDM). 2) (Indian) Purchase. 3) (Indian) Buy and Make. 4) Buy and Make. 5) (Global) Purchase.

 

  1. What is the Defence Procurement Procedure (DPP) 2016?

The Defence Procurement Procedure is designed to ensure that military equipment, systems, and platforms, as needed by the Armed Forces, are procured in a timely manner in terms of performance capabilities and quality requirements, through the efficient utilization of the budgetary resources allocated. It is worth noting that the paper is not simply a procurement mechanism but also an opportunity to enhance the procurement mechanism’s efficiency to realize the' Make in India' vision in the defense sector.

 

  1. How many JVs/ foreign direct investment proposals have been approved in the defense sector so far?

Since May 2001, 36 JVs / foreign direct investment proposals have been accepted for the manufacture of a wide range of licensable defense products, following the opening of the defense manufacturing market to 100% participation in the private sector.

 

  1. What is the FDI inflow in the defense sector since the opening for Private Participation?

A foreign direct investment inflow of $5.12 million (INR 25.51 crores) was earned in the country until September 2017, according to the foreign direct investment statistics available on the DIPP website (as per data available on the DIPP website).

 

  1. Which is the Administrative Ministry for the grant of extension for the Defence Industrial License? Where should the company apply for an extension of the Defence Industrial License?

Ministry of Defence, Department of Defence Production is the Administrative Ministry for grant of extension of Industrial license under the I(D&R) Act, 1951 to the private sector. The Company may submit to the Contract Purchase Officer, Department of Defence Production, Ministry of Defence, D(DIP) Section, Sena Bhawan, New Delhi, its IL extension application.

 

  1. What is the permissible foreign direct investment limit in the defense sector?

According to the revised guidelines, up to 49 percent of the foreign direct investment Limit is permitted by the automatic route and more than 49 percent by government route, wherever access to new technology or for other purposes is likely to be registered. In addition, under the Industries (Development & Regulation Act), 1951, foreign direct investment in the defense sector is subject to an industrial license.

 

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