StratPost goes through the revisions in the Defense Procurement Procedure announced by the defense ministry and tells you exactly what’s changed from DPP 2013.
Kavi kehna kya chahta hai? Giving the iteration a thumbs-down, defense industry executives questioned the rationale behind some of the amendments and also expressed pessimism, saying in some cased it would ‘make things worse’.
These changes are skewed to favor and encourage defense industry in India, some of which appear to have been influenced by reactions to corruption scandals. Do have a look at the list of changes, copied and pasted, verbatim, from the defense ministry press release.
The Defense Acquisitions Council of the Ministry of Defense has accepted the necessity for procuring nine Medium Range Maritime Reconnaissance (MRMR) aircraft for the Indian Navy. The Acceptance of Necessity (AON) this week came after the evaluation of data provided by vendors in response to the Request for Information (RFI) issued almost exactly a year…
A cost escalation of 50 percent (INR 63,000 crore, in this case) or more, requires approval again from the Ministry of Finance, before the Defense Acquisitions Council (DAC) can proceed with it. With the cost of the tender for India safely ranging from INR 83,000 crore to 1,25,000 crore, the revision of the estimated expenditure on the MMRCA would require the approval of the finance ministry.