Defence Procurement

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  • 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

    Refining Draft Defence Offset Guidelines 2020

    The draft offset guidelines 2020, with revamped features, is a bold attempt at attracting technology and investment as well as promoting defence exports. However, the MoD may consider further refining some of the features of the revised guidelines.

    June 08, 2020

    Defence Sector Reforms: A Long Haul

    Although the new measures announced to fast-track the defence sector are significant, they do not add up to a comprehensive and overarching reforms package.

    May 20, 2020

    Draft DPP-2020: Standard Contract Document

    Inclusion of new clauses in the draft DPP-2020 and changes made in some of the existing ones are intended to make the SCD more comprehensive. However, there is a scope for bringing about textual clarity in the new as well as some of the existing clauses of the SCD, especially those which have been modified.

    May 14, 2020

    Draft DPP 2020: Post-Contract Management

    Redrafting the chapter on post-contract management, expatiating the concept of contract operating officers and clearly defining their role and responsibilities vis-à-vis the other agencies, could go a long way in serving its purpose.

    May 08, 2020

    Draft DPP 2020 - Legacy Issues in Offset Guidelines

    It would be advisable to review the proposed offset guidelines keeping in view the feedback from the industry, especially the foreign vendors who carry the primary obligation to execute the offset contract, as also the legacy issues.

    April 30, 2020

    Public Private Partnership: A Model for Army’s Base Workshops

    The PPP model helps in improving the productivity and exploiting the full potential of asset-based services that base workshops provide. This is particularly relevant when there exists a competitive market and a benchmark for the army between an in-house and an external solution.

    April 18, 2020

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