Considering the impending financial crunch due to the Covid-19 pandemic and uncertainty about allocations in the coming years, it is unlikely that the MoD will be able to launch many new procurement programmes under the new DPP any time soon.
The present crisis is as much of a challenge as an opportunity to infuse financial realism in defence planning and bring about concomitant reforms in the quickest possible timeframe.
Draft DPP-2020 marks a paradigm shift from the past in many respects. It contains several new features intended to hasten the procurement process and provide a further fillip to the Make in India initiative in defence.
There is a need to act quickly on the issue of force majeure to scotch all speculations about how the MoD is going to deal with the inevitable delay in performance of contracts and instil confidence among the vendors.
There is a need to evolve a protocol for contract administration and post-contract management of all capital and revenue contracts awarded by various departments of the defence ministry and the armed forces.
The government seems to have little fiscal space for accommodating the demand of the armed forces for additional funds, given its quantum on the one hand and the state of its revenues on the other which are already quite stressed.
The blueprint for the operationalisation of CDS would require intensive deliberation to make sure that no aspect of its implementation is left unaddressed.
Even if the Fifteenth Finance Commission manages to make a specific recommendation about the funds to be allocated for defence and internal security and the government accepts the recommendation, there can be no guarantee that the actual allocation will not fall short of the accepted level.
It would be nice to see the defence ministry setting up a task force and submitting actionable recommendations which could be considered by the finance minister while deciding the defence outlay next year.
There is a need to make it clear in the text of Paragraph 72 of DPP 2016 that no vendor other than the Development-cum-Production partner or the nominated Production Agency will be permitted to enter the tendering process at the post prototype development stage.
A Case for Deferring Promulgation of DPP 2020
Considering the impending financial crunch due to the Covid-19 pandemic and uncertainty about allocations in the coming years, it is unlikely that the MoD will be able to launch many new procurement programmes under the new DPP any time soon.
Coping with New Guidelines on Expenditure Management
The present crisis is as much of a challenge as an opportunity to infuse financial realism in defence planning and bring about concomitant reforms in the quickest possible timeframe.
Refining Draft DPP 2020: Some Suggestions
Draft DPP-2020 marks a paradigm shift from the past in many respects. It contains several new features intended to hasten the procurement process and provide a further fillip to the Make in India initiative in defence.
COVID-19 Should Qualify as Force Majeure in Defence Contracts
There is a need to act quickly on the issue of force majeure to scotch all speculations about how the MoD is going to deal with the inevitable delay in performance of contracts and instil confidence among the vendors.
Protocol for Contract Administration and Post-Contract Management
There is a need to evolve a protocol for contract administration and post-contract management of all capital and revenue contracts awarded by various departments of the defence ministry and the armed forces.
Additional Allocation for Defence – A Challenging Task for MoF
The government seems to have little fiscal space for accommodating the demand of the armed forces for additional funds, given its quantum on the one hand and the state of its revenues on the other which are already quite stressed.
CDS: A Pragmatic Blueprint Required for Implementation
The blueprint for the operationalisation of CDS would require intensive deliberation to make sure that no aspect of its implementation is left unaddressed.
Can Fifteenth Finance Commission Resolve Funding Problems of Defence?
Even if the Fifteenth Finance Commission manages to make a specific recommendation about the funds to be allocated for defence and internal security and the government accepts the recommendation, there can be no guarantee that the actual allocation will not fall short of the accepted level.
No Further Increase in Defence Outlay: Need to Move On
It would be nice to see the defence ministry setting up a task force and submitting actionable recommendations which could be considered by the finance minister while deciding the defence outlay next year.
Design and Development of Equipment by DRDO, DPSUs and Ordnance Factories
There is a need to make it clear in the text of Paragraph 72 of DPP 2016 that no vendor other than the Development-cum-Production partner or the nominated Production Agency will be permitted to enter the tendering process at the post prototype development stage.