New defense procurement policy (DPP)
Q. Which of the following is/are true regarding Defense Procurement Policy?
1) Defense equipment designed and developed outside the country must have 60% of indigenous components.
2) For the equipment designed and developed in India, this limit is 30%.- Published on 05 Apr 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Neither 1 nor 2
- For the equipment designed and developed in India, this limit is 40%.
- From this, there is an opinion that it seems indigenous design and development of equipment is not really a priority for the defence ministry; it does not seem to have confidence in the Indian vendors' intent or capacity to design and develop. It apparently believes the Indian firms would just buy the 60% indigenous components rather than do the hard part of the job - design and develop.
- With the new DPP, it will be ensured that there is greater transparency and faster clearances.
- There is introduction of the new category called ‘Buy Indian (Indigenously Designed, Developed and Manufactured – IDDM)’.
- This category would have the highest priority, meaning, if there is a product that is designed and developed in India, then foreign/Indian vendors cannot participate in the said tender.
