India, as a nation that is constantly threatened both internally and externally by its neighbours, needs and possesses a formidable defence system. It’s borders are shared by seven nations, two of which pose constant challenges. Getting the third-largest military forces seems just and fair in light of this fact. While maintaining the world’s third largest military force is a difficult challenge. So, it necessitates a wide number of everyday requirements ranging from buying food for troops to obtaining weapons and ammunition for the corps, among other things. As a result, the Defence Ministry is a very important and well-equipped organ of the government. It is responsible for maintaining three services of the Indian Armed Forces, including the Army, Air Force, and Navy.
Defence procurement refers to the process by which officers in the military obtain all of the necessary equipment, goods, services. Also, works to carry out their duties and responsibilities. In essence, the Defence Procurement Procedure is a set of guidelines approved by the Defense Acquisition Council (DAC). It’s main objective is the procurement of defence equipment and technologies.
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Major laws and regulations related to defence procurement in India :
As a defence aspirant, every candidate should know about the law and regulations related to the defence procurement in India.
Objective of Defence Procurement Policy (DPP)
The main objective of DPP is to aid the armed forces with military equipment, systems and other necessary facilities. This should offer the guarantee of top-quality standards, performance efficiency through proper utilization of budget allocation. The Defence Procurement System puts strong focus on transparency and simplicity in the delivering best defence mechanism. Also, equipment to food and routine usable items required by the forces across the country. It also contributes to the designing, framing, producing and manufacturing efficiency of the entities that are associated with MSME (Ministry of Micro Small and Medium Enterprise).
Another underlying objective of DPP is to timely purchase the product as any time gap between manufacturing and deployment of goods in troublesome situations can lead to problematic consequences. Thus, DPP-16 concentrates on producing goods in domestic industry to overcome the issue of timely procurement.
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Scope of defence procurement system
The scope of DPP is to include each type of capital addition whether managed by the Ministry Of Defence (MoD). Indian Coast Guard and Defence Services from both heads i.e. indigenous sources and export-import parties except for medical appliances.
The medical appliances will be procured by the defence as they were procured upto March 2016. On the other hand organizations like Ordnance Factory Board (OFB),Defence Research and Development Organisation (DRDO) and Defence Public Sector Undertakings (DPSUs) will adhere to their procurement procedure.
The DPP-16 has dramatically strengthened the scope of Defence Procurement Procedure. The government will assure at least 90% of the funds for obtaining equipment. Also, elements or upgrades that are to be developed, designed and produced by India for the Projects classified under the category ‘Make’. Earlier the funds utilized for “Make” category projects executed in India was only 80%.
The scope has been reinforced for the small scale vendors who can now deliver indigenous parts to international vendors. The increase in offset to Rs 2000 crore has been applied because the agreements signed exceeding the limit don’t have indigenous requirements. This concludes that India can manufacture more products in domestic industry.
Rules and regulations
There are no specific rules and regulations concerned with the defence procurement in India. The defence procurement is managed and regulated by the DPP (Defence Procurement Policy). DPP specifies the controllers under which the purchasings are to be done and provide necessary guidelines regarding the management of those possessions. The principal objective of DPP is to convey the procedure through which procurement by the defence will be completed.
The defence procurement process initiates from the base level where the demand arises. A certain demand for a specific product is scrutinized by the superior committee which further observes the feasibility and veritable requirement of the demand. Afterwards, the committee thinks the demand to be appropriate for the purpose. Then, it sends the demand to the senior in charge and necessary procedures are to be followed by him as well.
The Defence Ministry is only responsible for the implementation of procedures and doesn’t intervene in the internal affairs of the defence forces. Important rules and regulations concerning defence procurement are enormously confidential and are inaccessible to a common man. This is done to protect it from misuse and keep it safe from the opponent.
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Every important information related to the defence procurement in India is mentioned above. Though there are no written rules assigned to the defence procurement in India, it is efficiently operated by the Defence Acquisition Council.