Defence Acquisition Procedure 2020 | UPSC
HEADLINES:
Raksha Mantri Shri Rajnath Singh unveils Defence Acquisition Procedure 2020;
WHY IN NEWS:
New DAP incorporates several measures to boost domestic Defence industry and Make in India
SYLLABUS COVERED: GS 3: Defence
LEARNING:
For PRELIMS nothing much here except the committee name .
For MAINS this is a very important issue . These reforms can be masked in any type of question related to Make in India , Defence Sector and DRDO.
ISSUE:
DEFENCE ACQUISITION PROCEDURE 2020
- Raksha Mantri Shri Rajnath Singh today unveiled the Defence Acquisition Procedure (DAP) – 2020 in New Delhi.
- Since then it has been revised periodically to provide impetus to the growing domestic industry .
AIM
COMMITTEE
- Raksha Mantri had approved constitution of Main Review Committee under Chairmanship of DG (Acquisition) Shri Apurva Chandra in Aug 2019 for preparation of DAP-2020.
- DAP 2020 will be applicable with effect from 01 October 2020.
FORMULATION
- Formulation of DAP 2020 has been done over more than one year.
- Incorporating comments/suggestions from a wide spectrum of stakeholders as under :-
- DAP 2020 has been aligned with the vision of the Government of Atmanirbhar Bharat.
- It is empowering Indian domestic industry through Make in India initiative.
- With the new Foreign Direct Investment policy announced, DAP 2020 will encourage FDI to establish manufacturing hubs .
LIST OF REFORMS
NOTIFY A LIST OF WEAPONS FOR BAN ON IMPORT
- Relevant incorporation has been done in the DAP.
- This will ensure that NO equipment as mentioned in the list is procured ex import post timelines notified.
INDIGENISATION OF IMPORTED SPARES
- REQUEST FOR INFORMATION : RFI stage will explore willingness of the prospective foreign vendors to progressively undertake manufacture and setup an indigenous eco system at the spares/sub component level.
- NEW CATEGORY FOR BUYING : The new category incorporates ‘manufacture of either the entire/part of the equipment or spares/assemblies etc. through its subsidiary in India.
- CO-PRODUCTION THROUGH IGA : This enables establishment of co-production facilities through IGA achieving ‘Import Substitution’ and reduce Life Cycle Cost.
- CONTRACTUAL ENABLEMENT : Buyer’s Right to optimise Life Cycle Support costs and system enhancements through indigenous eco system incorporated.
FDI IN DEFENCE MANUFACTURING
- With the announcement of new FDI Policy, suitable provisions have been incorporated like new category ‘Buy (Global – Manufacture in India)’ .
- On the other hand this will enabling requisite protections to domestic industry.
TIME BOUND DEFENCE PROCUREMENT PROCESS
- As part of the Defence Reforms , 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 Acquisition process.
EASE OF DOING BUSINESS
- One of the key focus areas of the review was to implement ‘Ease of Doing Business’.
SALIENT FEATURES OF DAP 2020
- Reservation in Categories for Indian Vendors
- Enhancement of Indigenous Content
- Overall Enhancement in Indigenous Content (IC)
- IC Verification
- Indigenous Military Material
- Indigenous Software
- Rationalisation of trial and testing procedures
- Inspections
- Make & Innovation.
- Design & Development
- Industry Friendly Commercial Terms
IASbhai WINDUP:
- DAP 2020 which has been formulated post interactions over a year, is an enabler & industry friendly procedure.
- DAP 2020 document instills a confidence and will meet aspirations of stakeholders across the spectrum.
SOURCES: PIB | Defence Acquisition Procedure 2020 | UPSC
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