Major changes in Defence procurement rules, priority to indigenously manufactured equipment

Delhi: Priority will be given to indigenously designed, developed and manufactured defence equipment from henceforth, as per a media report.

As per a report in NDTV, Defence Minister Manohar Parrikar has cleared major changes giving green signal to the above.

With changes all set to take place in how India buys its defence equipment, the report said that under new rules, indigenously designed, developed and manufactured equipment is slated to have at least 40 percent Indian components.

This is reportedly to continue with Prime Minister Narendra Modi's Make in India push initiative.

However, in case the design isn't Indian, 60 percent Indian component is necessary.

The website further said that he department of defence production will bear 90% of design and development cost of major systems.

This is being done to encourage research and development in the private sector.

On the other hand, small and medium scale industries will be given up to Rs 19 crore for design and development and contract within 24 months.

Yesterday, it was reported that former DRDO chief VK Aatre will submit this week a crucial report to the Defence Ministry recommending guidelines for selecting domestic private firms for strategic partnership in critical segments like submarines, aircraft and missiles.

"The report is ready and it will be submitted to the Defence Ministry on January 15," Aatre had said, as per PTI.

The recommendations, if accepted, will become part of the new Defence Procurement Procedure (DPP).

The ministry's top decision-making body, Defence Acquisition Council (DAC) is scheduled to meet on January 12 and the main focus would be the new DPP.

Sources said the contentious point of blacklisting is set to be discussed on that day.

(With Agency inputs)