{"id":172131,"date":"2022-03-04T19:12:49","date_gmt":"2022-03-04T13:42:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=172131"},"modified":"2022-03-04T19:12:49","modified_gmt":"2022-03-04T13:42:49","slug":"nod-for-defence-acquisition-procedure","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nod-for-defence-acquisition-procedure\/","title":{"rendered":"Nod for Defence Acquisition Procedure"},"content":{"rendered":"\n<h5><b>What is the news?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The Defence Ministry has Accorded In\u2013Principle (AIP) approval to four projects under Make\u2013I category and five under Make\u2013II category of Defence Acquisition Procedure 2020.<\/span><\/p>\n<h5><b>What is Defence Acquisition Procedure (DAP) 2020?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">Defence Procurement Procedure(DPP) was first initiated in 2002 to streamline the procurement of military hardware for the Armed Forces in a systematic and time-bound manner.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was reformed in 2016 putting an emphasis on indigenously designed, developed and manufactured weapon systems and eventually moved towards self-reliance in the field of defence manufacturing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">DAP 2020 has been aligned with the vision of the Government\u00a0 of <\/span><b>Atmanirbhar Bharat <\/b><span style=\"font-weight: 400;\">and empowering Indian domestic industry through <\/span><b>Make in India<\/b><span style=\"font-weight: 400;\"> initiative with the ultimate aim of turning India into a global manufacturing hub.<\/span><\/p>\n<h5><b>What are the key features of DAP 2020?<\/b><\/h5>\n<p><b>Time Bound Defence Procurement Process<\/b><span style=\"font-weight: 400;\">: A Project Management Unit has been set up to support contract management and to streamline the Acquisition process.<\/span><\/p>\n<p><b>Ban on Import of Certain Items:<\/b><span style=\"font-weight: 400;\"> With a view to promote domestic and indigenous industry, the Ministry of Defence(MoD) will notify a list of weapons\/platforms banned for import.<\/span><\/p>\n<p><b>Revised Offset Guidelines:<\/b> <span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Offsets are a portion of a contracted price with a foreign supplier that must be re-invested in the Indian defence sector, or against which the government can purchase technology.<\/span><\/p>\n<p><b>Rationalisation of Procedures for Trials and Testing<\/b><span style=\"font-weight: 400;\">: Scope of trials will be restricted to physical evaluation of core operational parameters.<\/span><\/p>\n<p><b>New Category of Buy (Global \u2013 Manufacture in India): <\/b><span style=\"font-weight: 400;\">The new category incorporates <\/span><i><span style=\"font-weight: 400;\">\u2018<\/span><\/i><span style=\"font-weight: 400;\">manufacture of either the entire<\/span><i><span style=\"font-weight: 400;\">\/<\/span><\/i><span style=\"font-weight: 400;\">part of the equipment or spares\/ assemblies\/Maintenance, Repair and Overhaul (MRO) facility for the equipment<\/span><i><span style=\"font-weight: 400;\">, <\/span><\/i><span style=\"font-weight: 400;\">through its subsidiary in India.<\/span><\/p>\n<p><b>Leasing<\/b><span style=\"font-weight: 400;\">: A new category introduced to enable operating of assets without owning thereby, substitute huge initial capital outlays.<\/span><\/p>\n<p><b>Enhancement of Indigenous Content<\/b><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-172132\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2022\/03\/1646329608-9109.jpg?resize=300%2C144&#038;ssl=1\" alt=\"\" width=\"300\" height=\"144\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2022\/03\/1646329608-9109.jpg?resize=300%2C144&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2022\/03\/1646329608-9109.jpg?w=600&amp;ssl=1 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><b>Make Category: <\/b><span style=\"font-weight: 400;\">Make category of capital acquisition is the cornerstone of the Make in India initiative:<\/span><\/p>\n<p><b>\u2013 \u2018Make-I\u2019<\/b><span style=\"font-weight: 400;\"> refers to government-funded projects\u00a0<\/span><\/p>\n<p><b>\u2013 \u2018Make-II\u2019<\/b><span style=\"font-weight: 400;\"> covers industry-funded programmes.<\/span><\/p>\n<p><b>\u2013 \u2018Make-III&#8217;<\/b><span style=\"font-weight: 400;\"> covers military hardware that may not be designed and developed indigenously, but can be manufactured in the country for import substitution, and Indian firms may manufacture these in collaboration with foreign partners.<\/span><\/p>\n<p><b>Reservation in Categories for Indian Vendors: <\/b><span style=\"font-weight: 400;\">The categories of Buy(Indian-IDDM), Make I, Make II, Production Agency in Design &amp; Development will be exclusively reserved for Indian Vendors meeting the criteria of Ownership and Control by resident Indian Citizens with FDI not more than 49%.\u00a0<\/span><\/p>\n<p><b>Source: <\/b>This post is based on the article <b>\u201c<\/b><b>Nod for Defence Acquisition Procedure<\/b><b>\u201d <\/b>published in<b> The Hindu <\/b>on<b> 4th Mar 2022.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the news? The Defence Ministry has Accorded In\u2013Principle (AIP) approval to four projects under Make\u2013I category and five under Make\u2013II category of Defence Acquisition Procedure 2020. What is Defence Acquisition Procedure (DAP) 2020? Defence Procurement Procedure(DPP) was first initiated in 2002 to streamline the procurement of military hardware for the Armed Forces in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/nod-for-defence-acquisition-procedure\/\">Continue reading <span class=\"screen-reader-text\">Nod for Defence Acquisition Procedure<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10498],"class_list":["post-172131","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/172131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=172131"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/172131\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=172131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=172131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=172131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}