30 March 2016

DPP 2016 Released At DefExpo 2016

Mar 28, 2016 

At the inauguration of DefExpo 2016, Shri Manohar Parrikar announced that the Defence Procurement Procedure-2016 (DPP-2016) has been uploaded on the website of Ministry of Defence, commenting that it will provide a push to the ‘Make in India’ campaign. He said the Government has been proactive in its ‘Make in India’ initiative and desires to also include ‘Startup India’ which will find opportunities in Defence sector. The Defence Minister stated that the Government has tweaked the policies to address the concerns of defence manufacturers and suppliers and enhanced transparency.

The new procurement policy being promulgated by DPP-2016 will ensure faster pace in procurement especially through newly introduced categories under Indigenously Designed, Developed and Manufactured (IDDM) provisions. Such provisions will encourage Indian Industry in Defence Sector, he added. He acknowledged the contributions of the Small and Medium Scale Industries in Defence Sector, quoting that many innovative ideas have come from these sectors.

He further added that, while Foreign Direct Investment (FDI) in Defence Sector is capped at 49%, cases for higher FDI can be considered on case to case basis. He commended the organisers and the delegates present for the overwhelming response to Defexpo 2016 with record participation of companies in the event.

The Document is available at http://mod.nic.in/writereaddata/DPP-2016.pdf. However many aspects of the procedure remain incomplete and the issue of nomination of strategic partners in private sector also has not been covered. 




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