New Defence Acquisition Procedure to reduce time delays, enhance ease of doing business: Check salient features
Defence Minister Rajnath Singh unveiled on Monday a brand new Defence Acquisition Procedure (DAP) that options steps to show India into a worldwide manufacturing hub of army platforms, cut back timelines for procurement of defence tools and permit the acquisition of important gadgets by the three providers via capital funds underneath a simplified mechanism.
READ | Defence Minister unveils Defence Acquisition Procedure, says DAP aligned with PM’s imaginative and prescient of Atmanirbhar Bharat
Under the brand new coverage, the offset tips have additionally been revised to provide choice to defence majors providing to fabricate merchandise in India as an alternative of assembly the offset obligations via different means, officers stated. The DAP additionally incorporates new chapters on data and communication applied sciences, post-contract administration, acquisition of programs developed by the state-run defence entities just like the DRDO and Defence Public Sector Undertakings (DPSUs), they stated.
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In what’s seen as a big transfer, the DAP featured measures to scale back delay in procurement of important gadgets by the three providers because it proposed a brand new enabling provision to accumulate them via capital funds underneath a simplified process in a time-bound method.
Singh stated the DAP has additionally included provisions to encourage international direct funding (FDI) to ascertain manufacturing hubs each for import substitution and exports whereas defending the pursuits of Indian home {industry}.
Salient options of DAP 2020:
* Reservation in Categories for Indian Vendors: The classes of Buy(Indian-IDDM), Make I, Make II, Production Agency in Design &Development, OFB/DPSU and SP mannequin will probably be solely reserved for Indian Vendors assembly the standards of Ownership and Control by resident Indian Citizens with FDI no more than 49%. This reservation will present exclusivity in participation to home Indian {industry}.
* Enhancement of Indigenous Content.
(a) Overall Enhancement in Indigenous Content (IC)
(b) IC Verification: A easy and sensible verification course of has been instituted and IC will now be calculated on ‘Base Contract Price’ i.e. Total Contract Price much less taxes & duties.
(c) Indigenous Military Material: Promoting use of indigenous army materials with provisions for examination of platforms and different tools/ programs and reward for distributors for utilizing indigenous uncooked materials
(d) Indigenous Software: Provision for exploring choices for working base purposes like Fire Control System, Radars, Encryption, Communications and so on on indigenous software program in Buy (Indian- IDDM) & Buy (Indian) circumstances has been included.
* Rationalisation of Trial and Testing Procedures.
(a) Testing tools primarily based on its employability and for different situations acceptable certifications confirming useful effectiveness could also be obtained.
(b) Scope of Trials will probably be restricted to the bodily analysis of core operational parameters, different parameters could also be evaluated primarily based on vendor certification, certification by accredited laboratories, laptop simulations of parameters.
(c) Avoid duplication of trials and waiver will probably be granted primarily based on Certificates of Conformance. Ensure simultaneity of assorted Trials and wherever possible, complete trials be carried out by a Combine Trial Team as a way to save time.
(d) Requisite alternative will probably be afforded to taking part distributors to rectify shortcomings/faults through the Trials with permission to hold out repairs.
(e) Request For Proposal will apprise distributors to submit draft Acceptance Test Procedure (ATP), to be finalised by QA company throughout Technical Trials itself. The pattern measurement for harmful exams together with the facet of value to be borne by the vendor will probably be said upfront within the RFP for a vendor.
(f) Inspections: No repetition of inspections will probably be carried out particularly through the acceptance of kit. Third-Party Inspections can even be carried out.
* Make & Innovation.
(a) Make I (Government Funded as much as 70%). Laying down a cap of Rs 250 crore/DA and collection of DAs primarily based on bidding standards.
(b) Make II (Industry Funded) for manufacturing of indigenously designed & developed weapons/tools/programs/platforms together with sub-components/assemblies.
(c) Make III (Indigenously Manufactured) class for the manufacture of kit/platforms or spares/assemblies/sub-assemblies for enabling import substitution.
(d) Procurement of prototypes developed via ‘Innovation’ underneath numerous initiatives like iDEX, Technology Development Fund and Internal Services Organisations has been facilitated.
* Design & Development. A separate devoted chapter has been integrated within the DAP 2020 for acquisition of programs Designed and Developed by DRDO/DPSUs/OFB. A simplified process with Integrated Single Stage Trials to scale back timelines and laying better emphasis on analysis via certification and simulation. Aspects of Spiral Development have been integrated.
* Address Voids: Certain present voids have been addressed within the type of new Chapters as underneath:-
(a) ‘Information Communication Technology’. Peculiar points associated to the procurement of ICT intensive tools particularly of Interoperability & Built-in Upgradability, enhanced safety necessities and alter administration have been included.
(b) Leasing. A brand new class launched to allow working of property with out proudly owning thereby, substitute large preliminary capital outlays.
(c) Post Contact Management: To formalise procedures post-signing of the contract with respect to inspections, levying of Liquidity Damages, Contract Amendments and so on.
(d) Other Capital Procurement Procedure: A brand new process has been included as a brand new chapter in DAP and structured as an enabling provision for Services to acquire important gadgets via Capital Budget underneath a simplified process in a time-bound method.
* Industry Friendly Commercial Terms.
(a) Price Variation Clause has been integrated for giant and protracted contracts as a way to avert inflated preliminary quotes by distributors and arriving at a practical worth of the venture.
(b) Payments to Vendors: Suitable provisions like parallel processing of paperwork by SHQ/PCDA via digital verification, inside laid down timelines, has been included to make sure well timed fee to distributors. Payments to Indian {industry} have been aligned with international {industry}.
* Offsets: The Offset tips have been revised, whereby choice will probably be given to the manufacturing of full defence merchandise over elements and numerous multipliers have been added to provide incentivisation within the discharge of Offsets.
* In truth, DAP 2020 which has been formulated publish interactions over a yr, is an enabler & industry-friendly process aligned with Government of India’s imaginative and prescient of Atmanirbhar Bharat & impetus to Make in India. DAP 2020 doc instils confidence and can meet the aspirations of stakeholders throughout the spectrum.
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