Defence Acquisition Council expected to approve amendments to DPP-2013

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New Delhi | Published: December 17, 2015 12:05:22 AM

The government has been talking about amendments to the DPP-2013 for a year

When the Defence Acquisition Council (DAC) meets later this week, topping the agenda would be the approval of proposed changes to the procurement procedure for approval as a prelude to promulgation of the much-awaited new version of the Defence Procurement Procedure-2013.

However, sources have indicated that it is unlikely that all recommendations made by the Dhirendra Singh committee will figure in the amended DPP as quite a few of them require further deliberation; some of them, such as those related to taxation, may even require the approval of other ministries.

Also, it seems increasingly unlikely that the Dhirendra Singh committee’s recommendation on developing strategic partners will find a place in the new DPP. For one thing, the Atre committee, set up to recommend the parameters for the selection of the strategic partners, is yet to submit its report.”

“Even if the report is submitted in a day or two, MoD will require time to study the recommendations and take a call as regards their implementability,” former financial adviser (acquisition), MoD, Amit Cowshish, said while sharing his views with the FE.

He added, “The strategic partners are apparently expected to undertake design and development projects under the ‘Make’ procedure. The ‘Make’ projects are futuristic projects with a long gestation period.”

Considering that at any point of time, there are going to be only a handful of ‘Make’ projects to be executed by the Indian industry, it should not really matter much if the ‘Make’ procedure is delinked from the DPP and notified separately in the next few months. This may even be desirable, rather than holding up promulgation of the new DPP incorporating changes in the procedure related to other categories of procurement.

According to Cowshish, “The bulk of procurement will anyway continue to be made under these procurement categories: ‘Buy (India)’, ‘Buy and Make (India)’, ‘Buy and Make’, and ‘Buy (Global). If anything, delinking of the ‘Make’ procedure from the remaining DPP will reduce the bulk of the DPP which many find to be quite intimidating.”

It is almost a year since the government has been talking about amendments to the DPP-2013 and policies regarding offsets, regulation of the role of agents, blacklisting of defence manufacturers, ‘Make’ projects, etc.

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