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Defence Acquisition Procedure (DAP) – 2020
News: The Defence Minister has unveiled the Defence Acquisition Procedure (DAP) – 2020
Facts:
Key Features:
- Notify a List of Weapons/Platforms for Ban on Import: Relevant incorporation has been done in the DAP to ensure that NO equipment as mentioned in the list is procured ex import post timelines notified.
- New Category of Buy (Global – Manufacture in India): The new category incorporates ‘manufacture of either the entire/part of the equipment or spares/assemblies/sub-assemblies/Maintenance, Repair and Overhaul (MRO) facility for the equipment, through its subsidiary in India.
- Revised Offset Guidelines: The Offset guidelines have been revised, wherein preference will be given to manufacture of complete defence products over components and various multipliers have been added to give incentivisation in discharge of Offsets.
- Project management unit: Setting up of a project management unit (PMU) has been mandated to support contract management. The PMU will facilitate obtaining advisory and consultancy support in specified areas to streamline the acquisition process.
- FDI in Defence Manufacturing: Provisions have been incorporated like a new category ‘Buy (Global — Manufacture in India)’, to encourage foreign companies to set up manufacturing through its subsidiary in India.
Additional Information:
|
- Enhancement in Indigenous Content (IC)
| Category | DPP 2016 | DAP 2020 | |
| Buy (Indian-IDDM) | Min 40% | Min 50% | |
| Buy (Indian) | Min 40% | Indigenous design — Min 50% Otherwise – Min 60% | |
| Buy & Make (Indian) | Min 50% of Make | Min 50% of Make | |
| Buy (Global — Manufacture in India) | Min 50% of Buy plus Make | ||
| Buy (Global) | Min 30% for Indian vendors | ||
