Capital Procurement of defence equipment from Indian and foreign vendors is progressed as per provisions of the Defence Procurement Procedure (DPP). The new DPP which has come into effect from 01.4.2016 incorporates provisions to ensure the highest degree of probity, public accountability, transparency, fair completion and level playing field. The DPP 2016 envisages signing of an integrity Pact between Government and the bidders for all capital procurement/ schemes of Rs. 20 crore and above. Earlier such pacts were required only for cases involving Rs. 100 crores and above. DPP 2016 provides that a foreign vendor is required to disclose full details of any such person, party, firm or institution engaged by them for marketing of their equipment in India, either on a country specific basis or as a part of a global or regional arrangement.
It also stipulates conditions for appointment of agents. It further provides that the Seller has to confirm and declare to the Buyer that it is the original manufacturer of the stores contracted and that no agent has been engaged to influence or manipulate award of the contract, or indulge in corrupt and unethical practices.
No case involving corruption in defence procurements undertaken during the last two years has come to light.