Defence Minister Rajnath Singh on Monday unveiled the new Defence Acquisition Procedure of 2020 (DAP 2020), which will govern the procurement of defence equipment from the capital budget. It will supersede the Defence Procurement Procedure of 2016 from October 1.
Taking its cue from the prime minister’s Atmanirbhar Abhiyan (self-reliance campaign), DAP 2020 reserves several procurement categories for indigenous firms. “The categories of Buy (Indian designed, developed and manufactured), Make I, Make II… and SP model will be exclusively reserved for Indian vendors…,” stated the MoD on Monday.
DAP 2020 defines an “Indian vendor” as a company that is owned and controlled by resident Indian citizens, with foreign direct investment (FDI) not more than 49 per cent.
The new policy introduces a significant new procurement category called “Buy (Global–Manufacture in India).” This stipulates indigenisation of at least 50 per