Singh said the DAP has also included provisions to encourage foreign direct investment (FDI) to establish manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry.

Rajnath Singh unveils new Defence Acquisition Procedure

Defence minister Rajnath Singh unveiled on Monday a brand new Defence Acquisition Procedure (DAP) that options steps to show India into a worldwide manufacturing hub of navy platforms, cut back timelines for procurement of defence tools and permit buy of important gadgets by the three companies by way of capital finances below a simplified mechanism.

Under the brand new coverage, the offset pointers have additionally been revised to present desire to defence majors providing to fabricate merchandise in India as an alternative of assembly the offset obligations by way of different means, officers stated.

The DAP additionally incorporates new chapters on info and communication applied sciences, post-contract administration, acquisition of methods developed by the state-run defence entities just like the DRDO and Defence Public Sector Undertakings (DPSUs), they stated.

In what’s seen as a big transfer, the DAP featured measures to scale back delay in procurement of important gadgets by the three companies because it proposed a brand new enabling provision to accumulate them by way of capital finances below a simplified process in a time-bound method.

Singh stated the DAP has additionally included provisions to encourage overseas direct funding (FDI) to ascertain manufacturing hubs each for import substitution and exports whereas defending the pursuits of Indian home trade.

“The offset guidelines have also been revised, wherein preference will be given to manufacture of complete defence products over components and various multipliers have been added to give incentivisation in discharge of offsets,” the defence minister tweeted.

He stated the DAP has been aligned with the imaginative and prescient of the federal government’s ‘Aatmanirbhar Bharat’ (self-reliant India) initiative and to empower Indian home trade by way of ‘Make in India’ tasks with the last word goal of turning the nation into a worldwide manufacturing hub.

The coverage additionally offers for single-stage accord of AoN (Acceptance of Necessity) in all instances as much as Rs 500 crore to chop delays in approval of acquisition proposals.

The DAP additionally talked about measures to reform pre-induction testing of defence tools.

“Scope of trials will be restricted to physical evaluation of core operational parameters. Other parameters may be evaluated based on vendor certification, certification by accredited laboratories, computer simulations of parameters etc,” it stated.

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