Dhirendra Singh Committee Recommendations

  • Capital acquisition of defence equipment is carried out as per the Defence Procurement Procedure (DPP), which stipulates a time schedule for completion of the procurement cycle. However, the time taken to undertake capital procurement of defence equipment depends on the nature and complexity of the equipment being procured.
  • The procurement of defence equipment involves rigorous trials, after which detailed bid evaluations and comprehensive commercial negotiations have to be undertaken. Nonetheless, under the DPP-2016, Government has laid down provisions for ensuring swift decision making and effective implementation of the procurement process.
  • Defence Procurement Procedure focuses on achieving the “Make in India” vision by according priority to ‘Buy (Indian – IDDM (Indian Designed, Developed and Manufactured)), ‘Buy (Indian)’ and ‘Buy & Make (Indian)’ categories over Buy (Global) category of capital procurement. During the last two financial years 2014-15 and 2015-16), 73 contracts involving a value of Rs.72,303.34 crore were signed with Indian vendors.
  • During the same period, 85 cases involving Rs.1,60,362 crore have been accorded Acceptance of Necessity (AON) by Defence Acquisition Council under the ‘Buy (Indian)’ ‘Buy & Make (Indian)’ and ‘Buy & Make’ categories.
  • The Dhirendra Singh Committee has recommended a ‘Strategic Partnership Model’ for creating capacity in the private sector on a long-term basis over and above the capacity and infrastructure that exists in Public Sector Units.
  • However, the policy and criteria for selection of Strategic Partners, is to be finalised after wider consultations with all stakeholders.

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