Defence Minister Shri Rajnath Singh on September 28, 2020 unveiled the Defence Acquisition Procedure (DAP) – 2020 in New Delhi.
- The offset clause requirement in Inter-Governmental Agreements (IGA) has been removed.
- Under offset clause, foreign companies are required to invest part of their deal value in the country and meant to improve the domestic defence manufacturing.
- As per the government, no offset has led to a transfer of technology and many of them had to do with product purchase.
- The new DAP 2020 has also introduced a new category for leasing of military equipment in addition to the existing ‘Buy’ and ‘Make’ categories to substitute huge initial capital outlays with periodical rental payments.
- Domestically designed, developed and manufactured armaments and defence hardware must have at least 50% indigenous content. This is up from 40% in the procedures outlined in 2016.
- If a defence platform is manufactured in India, it must have 60% Indian content.
- It also has provisions to encourage a foreign vendor to set up a subsidiary in India for the manufacture of either the entire platform or part of it, or its spares or the maintenance, repair and overhaul (MRO) facility for the equipment.
- -The first Defence Procurement Procedure (DPP) was promulgated in the year 2002 and has since been revised periodically to provide impetus to the growing domestic industry and achieve enhanced self reliance in defence manufacturing.
- The new DAP 2020 is based on the Main Review Committee constituted under Chairmanship of Shri Apurva Chandra in Aug 2019.
(Source: PIB, The Hindu and Mint)
CLICK HERE FOR UPSC PRELIMS CURRENT AFFAIRS MCQ
