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Entire Dhirendra Singh Panel Report On Defense Procurement - First On Arming India
By Arming India Correspondent
NEW DELHI, AUG 19, 2015: A 258-page report prepared by a panel headed by former Home Secretary Dhirendra Singh has recommended major changes in India's Defense Procurement Procedure (DPP), heavily favoring 'Make in India' for military manufacturing.
The Committee of Experts submitted the report on July 23, 2015 to Defense Minister Manohar Parrikar. The panel prepared the report after talking to all stake-holders in the defense sector. Now, the new DPP-2015 is being amended at the Defense Ministry for release at the earliest.
One interesting fact emerging from the report is that the panel has referred to the amendments as "DPP-2015". Is that an indication that the fresh procedures would be out in the next four months, before this year ends? That's anybody's guess.
But, here are some of the points and aspects of the DPP that the committee had recommended on and this could give you an indication of what's in store:
1. A BIG emphasis on 'Make in India' process and how to achieve that, for leveraging the eco-system thus created within the country and to optimize the direct and directed defense offsets to obtain critical technologies.
2. Strong recommendation for Indian entities like Defense Research and Development Organisation, Ordnance Factory Board and Defense Public Sector Undertakings to source more of their project requirements from Indian vendors.
3. Favours an increase, once every two years, in the indigenous content norm in the Buy (Indian) and the Buy and Make (Indian) categories of procurement.
4. Clearly defines an 'Indian Vendor' in a defense tender: "For defense products, an Indian entity/partnership firm, complying with, besides other regulations in force, the guidelines/licensing requirements stipulated by the Department of Industrial Policy and Promotion as applicable. As for defense products not requiring industrial license, the entities/partnership firms having foreign investment should have their management in Indian hands with the majority representation on the Board, as well as the Chief Executive being a resident Indian."
5. Has suggested that, in Buy (Indian) procurement cases, if an 'Single Vendor' situation is encountered after commercial bidding, then retraction of the Request for Proposals (RFP) should be avoided, as the bids were submitted in a competitive situation. The retraction of the RFP may happen only as an exception and not as a rule.
For those of you wanting to read the entire report, click the image below:
link to the full report
Entire Dhirendra Singh Panel Report On Defense Procurement - First On Arming India
By Arming India Correspondent
NEW DELHI, AUG 19, 2015: A 258-page report prepared by a panel headed by former Home Secretary Dhirendra Singh has recommended major changes in India's Defense Procurement Procedure (DPP), heavily favoring 'Make in India' for military manufacturing.
The Committee of Experts submitted the report on July 23, 2015 to Defense Minister Manohar Parrikar. The panel prepared the report after talking to all stake-holders in the defense sector. Now, the new DPP-2015 is being amended at the Defense Ministry for release at the earliest.
One interesting fact emerging from the report is that the panel has referred to the amendments as "DPP-2015". Is that an indication that the fresh procedures would be out in the next four months, before this year ends? That's anybody's guess.
But, here are some of the points and aspects of the DPP that the committee had recommended on and this could give you an indication of what's in store:
1. A BIG emphasis on 'Make in India' process and how to achieve that, for leveraging the eco-system thus created within the country and to optimize the direct and directed defense offsets to obtain critical technologies.
2. Strong recommendation for Indian entities like Defense Research and Development Organisation, Ordnance Factory Board and Defense Public Sector Undertakings to source more of their project requirements from Indian vendors.
3. Favours an increase, once every two years, in the indigenous content norm in the Buy (Indian) and the Buy and Make (Indian) categories of procurement.
4. Clearly defines an 'Indian Vendor' in a defense tender: "For defense products, an Indian entity/partnership firm, complying with, besides other regulations in force, the guidelines/licensing requirements stipulated by the Department of Industrial Policy and Promotion as applicable. As for defense products not requiring industrial license, the entities/partnership firms having foreign investment should have their management in Indian hands with the majority representation on the Board, as well as the Chief Executive being a resident Indian."
5. Has suggested that, in Buy (Indian) procurement cases, if an 'Single Vendor' situation is encountered after commercial bidding, then retraction of the Request for Proposals (RFP) should be avoided, as the bids were submitted in a competitive situation. The retraction of the RFP may happen only as an exception and not as a rule.
For those of you wanting to read the entire report, click the image below:
link to the full report
