What are Defence Capital Acquisitions Schemes? What is Dhirendra Singh Committee (Important) (Download PDF)

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The new Defence Procurement Procedure (DPP) - 2016 was implemented from 01.04. 2016. It lays the roadmap on how India, the world’s largest arms importer, will acquire defence equipment.

  • DPP 2016 replaces the Defence Procurement Procedure 2013 (DPP 2013)

  • Defence procurement policy was unveiled by the government:

  • to ensure transparency,

  • fast track acquisition process and

  • give a push to ‘Make in India’ initiative through Indigenous design, development and manufacturing of defence equipment, platforms & systems

Image of Opening Gates

Image of Opening Gates

Image of Opening Gates

Scope of DPP 2016

  • It will cover all capital acquisitions undertaken by the Union Ministry of Defence, Defence Services, and Indian Coast Guard (ICG) both from indigenous sources and import.

What are Defence Capital Acquisitions Schemes? (Important) They are broadly classified into three categories

  1. Buy Scheme: Outright purchase of equipment and procurements under this scheme are further categorized as Buy (Indian- IDDM), Buy (Indian), and Buy (Global). IDDM stands for Indigenously Designed Developed and Manufactured.

  2. Buy and Make scheme: The procurements are categorized as Buy and Make and Buy and Make (Indian).

  3. Make Scheme: It seeks developing long-term indigenous defence capabilities and procurements. It empowers Defence Acquisition Council (DAC) to take a fast-track route in order to acquire weapons, which are limited to the armed forces till now.

Order of Preference for Defence Capital Acquisition (Very Important)

Procurement of defence equipment in decreasing order of priority are as

  1. Buy (India-IDDM)

  2. Buy (Indian)

  3. Buy and Make (Indian)

  4. Buy and Make

  5. Buy (Global)

Boosting Make in India,

  • Buy (India-IDDM) seeks to boost indigenous production and procurements under it should 40 % sourced locally in terms of the content.

  • It will promote domestic manufacturing, including government funding R&D and recognition of the Micro, Small and Medium Enterprises (MSMEs) in technology development.

  • The DPP 2016 has been framed based on the recommendations of the Dhirendra Singh Committee that was appointed in May 2015 to review the DPP 2013.

  • The Committee was tasked to evolve a policy framework to facilitate Make in India in defence manufacturing in order align the policy evolved with DPP-2013

  • It was also tasked to suggest requisite amendments in DPP-2013 in order to remove bottlenecks in the procurement process and also rationalize various aspects of defence procurement.

Dhirendra Singh Committee and Recommendations

In order to evolve a policy framework to facilitate ‘Make in India’, align it with the Defence Procurement Procedure, and suggest requisite amendments in DPP- 2013, the Raksha Mantri approved appointment of a Committee of Experts drawn from various fields including the industry under chairmanship Dhirendra Singh. The Terms of Reference of the Committee were:

  • To evolve a policy framework to facilitate ‘Make in India’ in Defence manufacturing and align the policy evolved with the Defence Procurement Procedure (DPP 2013).

  • To suggest the requisite amendments in DPP 2013 to remove the bottlenecks in the procurement process and simplify/rationalize various aspects of the Defence procurement.

  • The committee made several recommendations most important is for creating ‘Strategic Partnership Model’ for creating capacity in the private sector on a long-term basis over and above the capacity and infrastructure that exists in Public Sector Units.

Image of Conceptual relationship in DPP

Image of Conceptual Relationship in DPP

Image of Conceptual relationship in DPP

- Published/Last Modified on: April 9, 2018

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