Ministry of Defence introduces new procurement policy, 'leasing' provision introduced

Unveiling the Draft Defence Procurement Procedure 2020 Union Defence Minister Rajnath Singh said, “I had constituted a review committee in August 2019 to revise the present DPP-2016.
Defence Minister Rajnath Singh (Photo | ANI)
Defence Minister Rajnath Singh (Photo | ANI)

NEW DELHI: From warships to transport aircraft, India now can formally take military equipment on lease from a friendly country. Ministry of Defence has come up with a new Defence Procurement Procedure (DPP) 2020 wherein “leasing” provision has been introduced as a new category for acquisition to existing ‘’buy and make’’ categories.

Unveiling the Draft Defence Procurement Procedure 2020 Union Defence Minister Rajnath Singh said, “I had constituted a review committee in August 2019 to revise the present DPP-2016. It gives me immense pleasure and satisfaction to announce that the draft of DPP 2020 has been prepared.”

Last changes in DPP were made in 2016. The draft DPP 2020 has been put in public domain. “In new Draft Defence Procurement Procedure 2020, we have simplified the procedure and reduced the timeline to ensure probity, transparency and accountability,” Singh said. The minister said that life cycle support of procured equipment and platforms in this new procedure has been taken up strongly.

The minister said that introduction of a strategic partnership model to progressively build capabilities of private sector and a new category of Buy with highest priority became a defining feature in DPP 2016,” said Singh, adding that under this model several projects of national importance such as production of 111 naval utility helicopters and construction of six P-75 (I) submarines have shown considerable progress.

He stressed that indigenous content stipulated in various categories of procurement has been enhanced to support Make in Indian initiative.

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