New Indian Defence Procurement Procedure (DPP) Released

The New Indian Defence Procurement Procedure (DPP) released today seeks to simplify and speed-up defence purchases.

The DPP prioritizes Indian Designed Developed and Manufactured (IDDM) acquisition.

The new DPP will have a provision for allowing the Defence Acquisition Council (DAC) to fast track the procedure by bypassing the Acceptance of Necessity (AON) process, in urgent cases like requirements of the Special Forces.

Preference will be given to indigenous design, development and manufacturing of defence equipment. Therefore, whenever the required arms, ammunition & equipment are possible to be made by Indian Industry, within the time lines required by the Services, the procurement will be made from indigenous sources.

To remove procedural delays, the new DPP has fixed a six month validity period for the Acceptance of Necessity (AON), the first step in the procurement process for categories under ‘Buy’ and ‘Buy and Make’ schemes.

AoN will be valid for one year in case of ‘Buy and Make (Indian)’ category and all turnkey projects. AoN would lapse for all cases where the RFP for approved quantity is not issued within the original validity period of AoN. In such cases, the services would have to re-validate the case and seek fresh AoN with due justification for not processing the case in time.

For cases where the original RFP has been issued within the original validity period of AoN and later retracted for any reason, the AoN would continue to remain valid, as long as the original decision and categorization remain unchanged, provided the subsequent RFP is issued within a period not exceeding the original validity period of the AoN.