Defence Procurement

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    • Defence Procurement: Negative Lists with Positive Implications

    The defence indigenisation lists are expected to promote domestic arms manufacturing and reduce the burden of arms imports.

    Mukesh Kumar
    September 30, 2022

    Applicability of CVC Guidelines to Defence Procurement

    Given that the Department of Expenditure will henceforth be the nodal department for issuing procurement related instructions in future, the Ministry of Defence must institute a system to promptly incorporate them in the MoD procurement manuals.

    Amit Cowshish
    August 29, 2022

    Issues in Co-Development and Co-Production of Defence Equipment

    The success of the co-development-cum-production push in Defence Acquisition Procedure 2020 would depend on the commercial viability of the co-developed product, apart from overcoming a host of conceptual and procedural challenges.

    Amit Cowshish
    August 17, 2022

    Shashank Mittal asked: What is technology transfer and with which all countries have India engaged in this regard?

    Amit Cowshish replies: Transfer of Technology (ToT) is the process by which the know-how underlying the development of a product, or any activity associated with its development, production or maintenance, is passed on by the original equipment manufacturer to another entity on mutually acceptable terms, largely financial.

    Vineet R. asked: If India can indigenously make the more complex SSBNs under ATV, why is it importing SSKs under P-75(I)?

    Abhay K. Singh replies: At the outset, it is pertinent to highlight that the acquisition of P-75(I) submarines is not being planned through import. The P-75(I) submarines will be indigenously constructed through the strategic partnership model (SPM) of procurement, which aims to revitalise the defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems for the future needs of armed forces.

    Anjali Ranawat asked: How far has India met the target of achieving $25 billion defence production by 2025, and what needs to be done to boost the defence industry to achieve the same?

    Amit Cowshish replies: The draft Defence Production and Export Promotion Policy (DPEPP) 2020 aims at achieving a turnover of Rs 1,75,000 crore (US$ 25 billion) by 2025, but no mechanism seems to be in place to aggregate the annual turnover–broadly defined as the value of sale–of the entire Indian defence industry, including the private sector entities.

    India–Israel Defence Trade and Defence Indigenisation

    The Srijan defence indigenisation portal is a limited but concrete example of the implications of India’s defence indigenisation efforts for key strategic partners like Israel.

    S. Samuel C. Rajiv
    February 04, 2022

    Defence Procurement in India: A Historical Perspective

    Defence procurement in India needs to adopt a mix of procurement avenues in which the indigenous solutions, foreign equipment and futuristic R&D continue together in a balanced manner. Considering that piecemeal solutions are not effective in the long term, there is a need to adopt a ‘Systems Approach’ to come up with a holistic solution which is enduring and progressive.

    Manish Rana
    December 02, 2021

    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.

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