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Imports to be last resort, new defence policy to push Make in India
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Anjali Ojha | 10 Aug, 2015
With Make in India the new mantra for defence manufacturing, the
government has decided against importing equipment unless it is
impossible to make it at home and this thrust on indigenisation will
reflect in the new Defence Procurement Procedure (DPP), sources said.
According
to thes highly placed sources, the modified DPP, a draft of which is
ready and under discussion in the defence ministry, is expected to be
finalised by the end of this month.
The document, along with
provisions for encouraging domestic industry, will have its spirit
summed up in a preamble that will stress on Make in India.
"The
DPP will have a preamble, which will clearly state that every product
should be designed, developed and made in India," a highly placed source
told IANS, not wishing to be identified by name.
"Imports will
be allowed only in case we cannot make it in India and as a last
resort," the source said, quoting from the preamble.
The defence
ministry has recently cleared several big ticket proposals under the
Make in India initiative and the new procedure will push it further.
Among
other provisions, the DPP is likely to initiate the process for a
Technology Development Fund (TDF), with initial capital of Rs 100 crore,
a defence ministry official said.
This fund will provide
financial support to the public and private sector, including small and
medium enterprises, and over 69 academic and scientific research and
development institutions other than the Defence Research and Development
Organisation. The fund will provide support for development of defence
equipment and systems that enhance cutting-edge technology in the
country.
There is a provision for promoting domestic
manufacturing in the existing DPP under the 'Make Procedure' but
officials said it was "not yielding results".
The government is
now likely to provide 80 percent of the research funding for promoting
domestic manufacturing in the defence sector.
Other changes being
made in the procedure include formulating a way to address complaints,
as even anonymous and unsigned complaints often delay the procurement
procedure. There is also a proposal to redefine the procedure for
blacklisting a company.
"Nuanced changes in the offset policy are
also on cards, as the ministry felt the current offset policy is not
effective," the official said.
"In most cases we are being forced
to deviate or give concessions to the foreign companies because our
policy is not right," the official added.
He said under the modified DPP, the offset policy will be linked to Make in India.
The
modified procedure has a provision for asking foreign suppliers to
forge links with Indian companies and manufacture spare parts in India.
"We
have had discussions with the Russians, Americans, Britons and French
on this (offsets) and we have got a positive response," the official
said.
The Defence Procurement Procedure (DPP) was first drafted
in 1992 and reviewed in 2002. It was then revised in 2003, 2005, 2006,
2008, 2011 and 2013.
A 10-member panel was constituted by Defence
Minister Manohar Parrikar to modify the DPP document which gave its
draft report last month.
(Anjali Ojha can be contacted as anjali.o@ians.in)
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DPP GOING TO BE CHANGE SOON
Dilip Kumar Mishra | Tue Aug 18 22:36:27 2015
You have drafted well, if you can give details for which of the companies are going to be benefited with this policy that would be more convenient for reader to understood this policy in a better way.
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