Preference for Indian vendors

The Government is pursuing initiatives to achieve higher levels of indigenization and self-reliance in the defence sector by harnessing the capabilities of the public and private sector industries in the country.

These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime, said Minister of State for Defence, Dr. Subhash Bhamre, in a written reply to Rajya Sabha on 31 Dec 2018.

Defence Procurement Procedure (DPP) accords the highest priority to Buy Indian (Indigenously Designed, Developed and Manufactured) (IDDM).

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 micro, small and medium enterprises (MSMEs), and with provisions for involving private industry as production agencies and technology transfer partners.

Government has also promulgated the policy on Strategic Partnership in the Defence Sector to encourage broader participation of the private sector in manufacture of major defence platforms and equipment, he explained.

During last three financial years, 2015-16 to 2017-18, 99 contracts, worth Rs.178,900 crore, were signed with Indian vendors. Forty-nine of these contracts have been signed with Indian private vendors for procurement of defence equipment.

In all, the Government has accorded Acceptance of Necessity (AoN) to 111 proposals, worth Rs.178,900 crore, during the three years. fiinews.com