1 minute readNew policy for defense buys in 2 months

The Secretary of Defense Production revealed that the Indian government would be releasing a new Defense Production Policy in the next couple of months.

The policy is still being firmed up with advice being sought from stakeholders like industry bodies (CII, FICCI etc) and end users like the armed forces.

RK Singh also said the government is reviewing the make procedure in its existing Defense Procurement Procedure in an attempt to simplify the procedure to enable Indian industry to bid for projects.

Briefing the media on the Defense Expo next week, RK Singh said, “If there are two Indian companies bidding for the same tender, L1 will get 60-65 per cent of the order’s share and L2 30-35 per cent,” also adding that the government would have a ‘minimum order policy’.

On offsets, the Secretary said, “Our industry is quite capable of meeting offsets,” adding, “Performance of offsets (by foreign vendors) is not contingent on hiking of FDI (into Indian defense industry).

So what do you think?