Defence Procurement Policy (DPP) 2016

Q.  As per the new Defence Procurement Policy (DPP) 2016, what is the ceiling for projects to be reserved for MSMEs?
- Published on 03 May 16

a. 10 crore
b. 5 crore
c. 1 crore
d. 15 crore

ANSWER: 10 crore
 
  • There are changes with respect to ‘make’ procedures. ‘Make’ procedure has four sub categories:
  • Government funded projects: Under this category 90% of the funding is done by the government and 10% is industry funded. There are two subcategories under this-
1) Projects under Rs 10 crore are reserved for MSMEs
2) Open category - if it is more than 10cr or if MSME cannot develop it even if it is under 10 crore
  • Industry funded projects:
1) Projects under Rs 3 crore are reserved for MSMEs.
2) More than 3 crore it is Open category.

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