Defence Minister Shri Manohar Parrikar has informed that Capital Procurement of Defence equipments / weapons is carried out as per Defence Procurement Procedure (DPP). During the last three years, 56 contracts have been signed with foreign vendors with cumulative value of Rs. 53684.32 crores for Capital procurement of Defence equipment for the Armed Forces such as Aircrafts, UAVs, Helicopters, Ammunition and 94 contracts have been signed with Indian vendors with cumulative value of Rs. 82979.70 crores for capital procurement of defence equipment such as Aircrafts, Helicopters, Tanks, Missiles, Radars, frigates and Simulators.
A number of measures have already been taken to achieve Self Sufficiency in defence production by harnessing the capabilities of the public and private sector. These measures include according priority and preference to procurement from Indian vendors, liberalization of the licensing regime and providing access to modern and state-of-the-art technology to Indian industry by raising the cap on FDI in the defence sector. The new Defence Procurement Procedure 2016 (DPP 2016) has been promulgated for Capital procurements and has come into effect from 1st April 2016. DPP 2016 gives strong support to “Make in India” by according the highest priority to Buy Indian (Designed, Developed and Manufactured (IDDM). It also focuses on enhancement and rationalization of indigenous content and includes provisions for involving private industry as production agencies and technology transfer partners. The ‘Make’ Procedure has been simplified with provisions for earmarking projects not exceeding development cost of Rs.10 crores (government funded) and Rs.3 crores (industry funded) for MSMEs.
The information is being collected from other departments, there is no specific proposal in Ministry of Defence.
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