India Considering Exclusive Set Up For Defense Procurement

India is considering setting up an exclusive organization for defense acquisition.

"A separate set up for defence acquisition, at capital level as well as revenue level and OFB needs to be created. We are considering that," Indian Defense Minister Manohar Parrikar was quoted as saying by PTI Thursday at the launch of the Defence Innovators and Industry Association (DIIA).

He said it will take another six months for the concept to firm up.

This was also one of the recommendations of the Dhirendra Singh Committee that was set up the Defence Ministry to suggest changes to the Defence Procurement Procedure. 

"This concept is under active consideration and definitely during the current calender year, this set up should be there," Parrikar said replying to questions.

He said there should be continuity of information, knowledge and experience.

The Dhirendra Singh Committee has proposed "Dedicated Procurement Organisation Outside The Government Of India Ministry Structure" in a report submitted last year.

It had said that the procurement executive as now established is a result of the recommendations of the Group of Ministers post Kargil, and is one of the institutions created as part of the reorganisation of the higher defence management structures.

"It has now functioned for more than a decade. Like any organisation it has its strength and weaknesses. It is our recommendation that the time is ripe for it to undergo a second set of reforms.

"Its main drawback is that it essentially performs line functions whilst being embedded in a larger structure, which is designed to perform staff functions," the report had said.