MoD | New process for procurement of Defence Equipment

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Ministry of Defence
Ministry of Defence

The revision of procedure for Defence Capital Acquisitions as given in DPP-2016 was undertaken incorporating comments/suggestions of a wide spectrum of stakeholders and accordingly, Ministry of Defence promulgated the Defence Acquisition Procedure 2020 (DAP 2020) with effect from 01st October, 2020.

To bring transparency & speed in defence acquisitions, following steps have been taken:

  1. For cutting down time frames:
  • Single stage grant of AoN,
  • Delegation of approvals/financial powers,
  • Simplification of trials process, and
  • Integrated and joint approach in D&D cases.

 

  1. To promote probity, public accountability and transparency in

defence capital procurements:

  • Pre Contract Integrity Pact (PCIP) for all cases above Rs 20 crore,
  • Time bound disposal of complaints,
  • Ascertaining vigilance status of L1 vendor before seeking approval of the Competent Financial Authority (CFA),
  • Notification of guidelines for Penalties in Business Dealings with suspect Entities,
  • Capacity Assessment guidelines for Shipbuilding Entities.

 

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Prakash Javadekar in Rajya Sabha on March 14, 2022.

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