Defence Acquisition Procedure 2020 | UPSC

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: 

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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