DAC clears new Defence Procurement Procedure

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New Delhi, Mar. 21 (ANI): Defence Minister Manohar Parrikar on Monday gave final approval to the new Defence Procurement Policy (DPP) 2016, which will come into effect from April 1, 2016.

The DPP, which will have provisions to fast-track acquisition of critically-needed equipments, will be unveiled at the Defence Expo on March 28.

The policy will give first priority to Indian Designed Developed and Manufactured (IDDM) acquisition and relax norms with respect to blacklisting. There will be strategic partnerships in case of helicopters, fighters and submarine projects.

As well, the government will updated the Ordnance Factory Board and Defence Procurement Manuals in two months.

Parrikar said the new blacklisting policy will also be issued separately next month and made it clear that there will be no relaxation for those who have already been blacklisted and bribe givers will be punished.

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However, he said that existing blacklisted firms will be allowed to appeal before a vigilance committee of the Defence Ministry for delisting under the new policy.

The new DPP will also have provision for allowing the DAC to fast track the procedure by bypassing the Acceptance of Necessity (AON) process, in urgent cases like requirements of the Special Forces. (ANI)

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