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Defence Procurement

The Defence Acquisition Council (DAC) had accorded Acceptance of Necessity (AoN) in October, 2009 for Capital procurement of Bullet Proof Jackets (BPJs).  The Request for Proposal (RFP) for the Capital procurement of BPJs was retracted in October, 2015 as the BPJs fielded by vendors failed in the trials.  Government has taken action to procure 50,000 bullet proof jackets through revenue route.  Approval has also been given to procure bullet proof jackets to meet urgent operational requirements through Army Commanders Special Financial Powers (ACSFP).  The Government constantly reviews the security scenario and accordingly, decides to induct appropriate defence equipment to keep the armed forces in a state of readiness.  The details of Capital Acquisition Budget of the Ministry of Defence and Actuals during the last 3 years and current year is as follows:-

Year BE RE
2012-13 66032.24 57395.46
2013-14 73444.59 66406.41
2014-15 75148.03 66151.73
2015-16 22054.50

The Capital procurement of Defence equipment is done as per the provisions of Defence Procurement Procedure (DPP) which contains timelines for various stages of procurement. Some of the steps taken by the Government to fast-track the process of defence procurement, inter alia, include finalization of Service Qualitative Requirements (SQRs) before seeking the AoN; reduction of validity of AoN to one year; delegation of Financial Powers; decision in a collegiate manner and imposition of Liquidated Damages (LDs) on vendors for delay in execution of contracts.

The DPP provides for review of the procurement procedure after every two years.  Amendments are also made in DPP from time to time as required.  The Government appointed a Committee of Experts in May, 2015 for amendments to DPP, 2013 including Formulation of Policy Framework to facilitate ‘Make in India’ in Defence Manufacturing.  The Committee has already submitted its report to the Government.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Bidyut Baran Mahato and others in Lok Sabha.