Defence Procurement

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  • Mayank Bahuguna asked: What are the relevant lessons for Make in India from the role of private companies in the American defence industry?

    Amit Cowshish replies: The business practices, professionalism, and potential of the private sector in India for undertaking the design, development and production of sophisticated defence equipment are second to none in the world. If, despite this, India has not become a defence manufacturing hub, it is largely because of the economic and geopolitical milieu of the country, which is vastly different from the one in which the private defence companies bloomed in the US after the Second World War.

    Prashant Gogia asked: Is the Fall Clause applicable to direct purchase/urgent procurement and purchase requisition on GeM?

    Amit Cowshish replies: The standard format of Request for Proposal (RfP) given in the Defence Acquisition Procedure 2020 (DAP 2020) includes the Fall Clause. This clause requires the bidders to submit a written undertaking as a part of the technical offer that they have not supplied, or are not supplying, similar systems or subsystems at a price lower than that offered in the present bid to any other ministry or department of the Government of India.

    Public Procurement Framework in India

    The GFR 2017 permit individual ministries to issue detailed instructions to address the needs and complexities of procurement carried out by them. The question is whether those principles and rules come in the way of the Ministry of Defence evolving a more efficient procurement procedure that meets the armed forces’ aspirations.

    August 19, 2021

    Viable Alternatives Required to Replace Existing Procurement Procedures

    If existing procurement procedures are a hindrance in acquiring state-of-the-art defence materiel expeditiously, a case needs to be made out, based on demonstrable drawbacks of the existing system for a detailed blueprint of what system should replace it.

    August 10, 2021

    Self-Reliance in Defence Sector

    The Ministry of Defence has taken significant steps in recent times to boost domestic defence manufacturing and increase the role of the private sector to reduce dependence on imports and achieve self-reliance.

    August 04, 2021

    Decoding Defence Acquisition Procedure 2020

    The Defence Acquisition Procedure (DAP 2020), which supersedes the Defence Procurement Procedure 2016 (DPP 2016), is a sincere effort by the Ministry of Defence to improve the capital procurement procedure.

    November 20, 2020

    Other Capital Procurement Procedure: A Chip off the Old Block

    The OCPP is a mix of revenue and capital procurement procedures, based on the Defence Procurement Manual 2006. It could have been an opportunity to lay down a more self-contained procedure.

    October 23, 2020

    Chinmay Khadke asked: Is there any ToT involved in C295 transport aircraft to be built by Tata-Airbus in India? What can be its implications for the aviation manufacturing ecosystem? Any potential civilian transport use of aircraft?

    Kishore Kumar Khera replies: A contract for procurement of 62 C295 aircraft is under consideration for replacement of 56 HS748 Avro for the Indian Air Force (IAF) and the balance six aircraft for the Indian Coast Guard. Of these, 16 aircraft are to be built by the original equipment manufacturer (OEM) and the balance aircraft will be manufactured in India. To facilitate aircraft manufacturing in India, certain Transfer of technology (ToT) is inevitable.

    Should MoD Persist with Defence Offsets?

    The changes proposed in the offset guidelines require a fresh look, both on conceptual and empirical grounds, as the new regime is likely to yield diminishing returns.

    August 07, 2020

    Expediting Negotiation in Defence Contracts

    Finetuning negotiation protocols and limiting the scope of negotiations could result in rapid conclusion of negotiations and contract finalisation.

    June 19, 2020

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