Defence Production and Export Promotion Policy 2020

The government of India launched its Defence Production and Export Promotion Policy 2020. A strong defence manufacturing sector in India would reduce reliance on foreign suppliers and will provide the opportunity to create IP and domestic technologies and capabilities which often have significant civil applications. It will also provide a platform to tap export markets. As an emerging economic superpower, India needs to cut down on its spending on defence. Hence indigenization of the industry and acquiring modern technology is crucial for India. According to Mr. Tribhuvan Darbari, MD & CEO, “It will not only promote domestic and indigenous industry but will also boost the Aatmanirbhar Abhiyan.”

Recently released Defence Production and Export Promotion Policy 2020 is the second draft. The new procedure aims at updating the DPP 2016. Let’s see what Mr. Ashish Shukla has written about it in his recent article published in www.psuwatch.com. Read the complete article here.

“2nd draft DPP: So, what’s new?

In the new proposal, the ban on import of certain weapons has been mooted with a view to push for the goal of self-reliance in defence manufacturing. However, the proposed list is yet to be decided and will be notified at a later stage. The draft said, “With a view to promote domestic and indigenous industry as also align the DAP with the reforms enunciated in the Aatmanirbhar Abhiyan (self-reliance campaign), the MoD will notify a list of weapons/platforms banned for import, updated from time to time.”

The amended draft also includes a new procurement category — buy, which envisages global players manufacturing in India. The category calls for foreign vendors to indigenize purchase to the extent of at least 50 percent of the contract value. The category would push foreign vendors to manufacture a larger part of their materials in India. Vendors may achieve the desired level of indigenous manufacturing by either making the entire equipment, spares or undertaking assemblies, sub-assemblies or through the maintenance, repair and overhaul (MRO) facility for the equipment, through its subsidiary in India.

The new procedure has given a larger window for concluding a contract, including the time for trial evaluation, which has been increased from the existing 112-169 days to a period of 122-231 days.”

Source- https://psuwatch.com/draft-dpp-defence-procurement-procedure-mod