Setting up of New Organisation for Undertaking Defence Procurement

Tuesday, April 11, 2017

New Delhi: Ministry of Defence constituted a Committee in April, 2016 comprising experts from various fields to study the setting up of a Defence Procurement Organisation.

The Committee submitted its Report in February 2017. The Committee has recommended the creation of a central, autonomous, empowered professional organization to build up indigenous defence capability as a strategic imperative for long term self-reliance.

Several measures have been taken in this regard which include:

• Reducing broad timeframe for completing procurement activities,

• Reduction of validity for Acceptance of Necessity to 6 months for ‘Buy’ cases and to one year for ‘Buy and Make (Indian) cases’,

• Incorporation of guidelines for change of name of vendor in Defence Procurement Procedure-2016 and notification of complaint handling guidelines,

• Processing of single vendor cases with due justification, instead of automatic retraction,

• Provision of Field Evaluation Trials in conditions where equipment is most likely to be deployed,

• Increased use of certification and simulations in technical evaluation of equipment.

• Enhancement of aim of Fast Track Procedure to cover urgent operational requirements,

• Elaboration of Request for Information process as the first step of acquisition process and defining the objectives clearly,

• Provision for bringing cases with ‘Acceptance of Necessity’ value of more than 150 crore directly before Services Capital Acquisition Categorisation Higher Committee by eliminating one level.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Rajeev Shukla in Rajya Sabha today.