New defence procurement policy comes into force

Against the backdrop of scams such as the VVIP chopper deal, a new defence procurement policy came into force on Saturday which aims at enhancing transparency and probity in military purchases and gives first right of refusal to Indian vendors to promote indigenous industry.

"The Defence Procurement Procedure 2013 which takes effect from today, aims to balance the competing requirements of expediting capital procurement, developing a robust indigenous defence sector and conforming to the highest standards of transparency, probity and public accountability,"
defence ministry said in a release.

While laying a strong emphasis on promoting indigenisation, the new policy aims at creating a level playing field for the Indian Industry, it said. In his remarks in the foreword of the new policy document, defence minister A K Antony expressed hope that "the defence industry as well as the procurement agencies will find the DPP-2013 to be a 'progressive step' aimed at giving impetus to indigenisation, creating level playing field and expediting the procurement process as a whole."

Terming defence acquisition as a "complex" process, the defence minister said, it needs to balance the competing requirements of expeditious procurement, development of an indigenous defence sector and conformity to the highest standards of transparency and probity. 

In the new policy, the defence ministry has accorded a "higher preference explicitly to the Buy (Indian), Buy and Make (Indian) and Make categorisation, besides bringing further clarity in the definition of the 'Indigenous Content' and simplifying the Buy and Make (Indian) process."