Defence Procurement Procedure

The new Defence Procurement Procedure (DPP) 2016 containing the Preamble and 5 Chapters has been put on Ministry of Defence website on 28.03.2016. The new DPP focuses on a boost to the ‘Make in India’ -initiative of the Government of India, through Indigenous design, development and manufacturing of defence equipment, platforms & systems. The ‘Make’ procedure has been simplified to ensure increased participation of the Indian industry. Enhancing the role of MSMEs in defence sector, and cutting down permissible timeframes for various procurement activities, are the other defining features of DPP-2016.

The new category viz. Buy (Indian-IDDM) refers to the procurement of products from an Indian vendors meeting one of the two conditions:

• products that have been indigenously designed, developed and manufactured with a minimum of 40% Indigenous Content (IC) on cost basis of the total contract value; or

• products having 60% IC on cost basis of the total contract value, which may not have been designed and developed indigenously. This category has been accorded the highest priority, to boost the indigenous defence industry.

Ministry of Defence has not received any complaints with regard to implementation of the new DPP-2016.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Bhagwanth Khuba and others in Lok Sabha today.


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