Latest news with #DAP2020
Hindustan Times
20 hours ago
- Business
- Hindustan Times
Defence ministry sets up panel to review acquisition procedure
The defence ministry on Thursday said it has set up a high-powered committee, headed by the director general (acquisition), to steer a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 for speedy modernisation of the armed forces and boosting self-reliance in the critical sector. The panel includes senior officers from the ministry, representatives from the defence industry and academia. 'Following the declaration of 2025 as the 'year of reforms', the defence ministry has initiated a comprehensive review of the DAP 2020 to align it with existing government policies and initiatives. A committee headed by the director general (acquisition) has been constituted to carry out extensive deliberations with all stakeholders,' the defence ministry said. The panel has begun consultations with the stakeholders and invited suggestions from them by July 5. The aim of the review, the ministry said, is to meet the operational requirements and modernisation needs of the armed forces in a timely manner to ensure national security and achieve 'atmanirbharta' (self-reliance) goals by promoting technology infusion through indigenously designed and developed systems. It also seeks to boost the Make-in-India initiative by promoting defence manufacturing through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign original equipment manufacturers to invest in the country and establish India as a global defence manufacturing and MRO (maintenance, repair and overhaul) hub, the ministry said in a statement. Another goal is to 'promote design and development in both public and private sectors, with a focus on startups, innovators, and the private defence industry for indigenous technology infusion'. The panel was formed weeks after India launched Operation Sindoor in the early hours of May 7 and struck terror and military installations in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror strike in which 26 people were shot dead. It triggered a four-day military confrontation with Pakistan before the two sides reached an understanding on stopping all military action on May 10. Indian forces deployed several indigenous weapons during the clash. The panel has sought suggestions from stakeholders on a raft of issues including policy/procedural changes to streamline the acquisition processes, ease of doing business, conduct of trials, post-contract management, fast-track procedures, adoption of new technologies including artificial intelligence, and language improvements to eliminate ambiguity and enhance procedural clarity in the DAP. On May 30, defence secretary Rajesh Kumar Singh said DAP 2020, the document that spells out the complex procurement process, is being revisited to reflect current realities. He said the government is taking steps to shorten the weapon procurement cycle and has already cut it by more than a year -- a move aimed at accelerating the modernisation of the armed forces. 'The defence ministry has already, in the year of reforms, slashed the timelines for some of the processes in the procurement cycle. This would save about 69 weeks overall in the process timeline,' he said at a defence conclave. There is a need to shift away from the traditional nomination-based procurement focused mostly on the public sector to a more competitive pricing model where both the public and private sector can compete for orders, he said, adding this approach is already being implemented for shipbuilding and recently for the AMCA (advanced medium combat aircraft) project. The defence ministry has declared 2025 as the year of reforms aimed at transforming the military into a technologically advanced, combat-ready force capable of tackling new challenges. The nine areas identified by the defence ministry for focused intervention include simplifying weapons buying procedures, setting up of integrated theatre commands for the best use of the military's resources to fight future wars, and new domains such as cyber and space. On May 29, the chief of the air staff Air Chief Marshal AP Singh put the spotlight on the armed forces' agonising wait for new weapons and systems, saying he could not recall a single instance of a project being executed on time, in what was seen as a wake-up call for the country's defence production sector. 'Timelines are a big issue,' Singh said at the time.
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Business Standard
a day ago
- Business
- Business Standard
Panel formed to review Defence Acquisition Procedure 2020: Defence ministry
A committee led by the Director General (Acquisition) has been established to conduct detailed deliberations with stakeholders for a full review of the Defence Acquisition Procedure (DAP) 2020, the Ministry of Defence announced on Thursday. The objective of the review is to enhance the pace of armed forces modernisation and meet national security requirements more efficiently, while also aligning the acquisition framework with central government policies supporting self-reliance in defence manufacturing. Aligning DAP with Atmanirbhar Bharat and Make in India The ministry noted that the review aligns with the government's broader goal of achieving Aatmanirbharta and promoting the Make in India initiative. Originally launched in September 2020 by Defence Minister Rajnath Singh, DAP 2020 was intended to bolster India's domestic defence manufacturing capabilities and position the country as a global production hub. Following the declaration of 2025 as the 'Year of Reforms,' the defence ministry initiated this 'comprehensive review' to reflect current government priorities. The newly formed committee includes senior defence ministry officials, industry stakeholders, and representatives from academia. Former DG (Acquisition) and retired IAS officer Apurva Chandra has been appointed as Principal Advisor to the committee. The committee has already begun consultations and has invited stakeholder suggestions by 5 July. Objectives of the review The review aims to: Support Aatmanirbharta by promoting indigenous technology and locally designed systems Foster Make in India through manufacturing partnerships, joint ventures, and technology transfers Attract foreign OEMs by aligning procedures with FDI norms Establish India as a hub for global defence manufacturing and MRO (Maintenance, Repair, and Overhaul) The revised framework is expected to support defence start-ups, innovators, and private players to integrate local technologies and strengthen India's R&D ecosystem. Feedback sought on key reforms The ministry has sought public input on areas including: Procedural streamlining and ease of doing business Trial and post-contract protocols Fast-track acquisitions Categorisation improvements Adoption of emerging technologies such as artificial intelligence Language clarity and procedural transparency in the DAP Background: DAP evolution since 2002 India's defence procurement framework dates back to 2002 and has been revised periodically to boost domestic capacity. In 2019, then Defence Minister Rajnath Singh approved the formation of the Main Review Committee under Apurva Chandra to draft the current DAP 2020. Following extensive consultation, DAP 2020 came into force on 1 October 2020, incorporating feedback from a broad spectrum of stakeholders.
India Today
a day ago
- Business
- India Today
Government reviews defence acquisition procedure 2020 to boost self-reliance
In line with the government's declaration of 2025 as the 'Year of Reforms', the Ministry of Defence (MoD) has initiated a comprehensive review of the Defence Acquisition Procedure (DAP) 2020. The move aims to align the acquisition framework with the Government of India's current policies and initiatives, particularly those focusing on self-reliance and technological advancement.A Committee led by the Director General (Acquisition) has been formed to undertake extensive deliberations with all stakeholders. The panel includes senior officers from the MoD, along with representatives from the defence industry and strengthen the review process, the Ministry has appointed Shri Apurva Chandra, a 1980 batch former IAS officer and former Director General (Acquisition), as the Principal Advisor to the Committee. The panel has already begun consultations and has invited suggestions from stakeholders. The review of DAP 2020 seeks to:Ensure the timely fulfilment of operational requirements and modernisation goals of the Armed Forces to uphold national acquisition procedures with key government initiatives, with the aim of:a. 'Achieve Aatmanirbharta (Self-Reliance) by promoting technology infusion through indigenously designed and developed systems.'b. 'Enable 'Make in India' by promoting defence manufacturing in India through the facilitation of Joint Ventures and Transfer of Technology to the private sector, encouraging foreign original equipment manufacturers via FDI alignment, and establishing India as a global Defence manufacturing and maintenance, repair and operations hub.'advertisementc. 'Promote Design and Development in both public and private sectors, with a focus on Startups, Innovators, and the Private Defence Industry for indigenous technology infusion.'The Committee is specifically seeking feedback on three key areas:Policy and procedural reforms to streamline the acquisition process, including categorisation, ease of doing business, trial procedures, post-contract management, fast-track mechanisms, and integration of emerging technologies like Artificial refinements aimed at eliminating ambiguity, resolving inconsistencies, and enhancing clarity within the DAP other relevant issues that stakeholders believe should be addressed in the upcoming Watch
Hindustan Times
a day ago
- Business
- Hindustan Times
Defence ministry sets up panel to steer review of arms-buying rules
NEW DELHI: The defence ministry on Thursday said it has set up a high-powered committee, headed by the director general (acquisition), to steer a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 for speedy modernisation of the armed forces and boosting self-reliance in the critical sector. The panel includes senior officers from the ministry, representatives from the defence industry and academia. 'Following the declaration of 2025 as the 'year of reforms', the defence ministry has initiated a comprehensive review of the DAP 2020 to align it with existing government policies and initiatives. A committee headed by the director general (acquisition) has been constituted to carry out extensive deliberations with all stakeholders,' the defence ministry said. The panel has begun consultations with the stakeholders and invited suggestions from them by July 5. The aim of the review, the ministry said, is to meet the operational requirements and modernisation needs of the armed forces in a timely manner to ensure national security and achieve 'atmanirbharta' goals by promoting technology infusion through indigenously designed and developed systems. It also seeks to boost the Make-in-India initiative by promoting defence manufacturing through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign original equipment manufacturers to invest in the country and establish India as a global defence manufacturing and MRO (maintenance, repair and overhaul) hub, the ministry said in a statement. Another goal is to 'promote design and development in both public and private sectors, with a focus on startups, innovators, and the private defence industry for indigenous technology infusion.' The panel was formed weeks after India launched Operation Sindoor in the early hours of May 7 and struck terror and military installations in Pakistan and Pakistan-occupied Kashmir (PoK) following the Pahalgam terror strike in which 26 people were shot dead. It triggered a four-day military confrontation with Pakistan before the two sides reached an understanding on stopping all military action on May 10. Indian forces deployed several indigenous weapons during the clash. The panel has sought suggestions from stakeholders on a raft of issues including policy/procedural changes to streamline the acquisition processes, ease of doing business, conduct of trials, post-contract management, fast-track procedures, adoption of new technologies including artificial intelligence, and language improvements to eliminate ambiguity and enhance procedural clarity in the DAP. On May 30, defence secretary Rajesh Kumar Singh told a defence conclave that DAP 2020, the document that spells out the complex procurement process, was being revisited to reflect current realities. He said the government was taking steps to shorten the weapon procurement cycle and has already cut it by more than a year. 'The defence ministry has already, in the year of reforms, slashed the timelines for some of the processes in the procurement cycle. This would save about 69 weeks overall in the process timeline,' he said at the event. There is a need to shift away from the traditional nomination-based procurement focused mostly on the public sector to a more competitive pricing model where both the public and private sector can compete for orders, Singh said, adding this approach was being implemented for shipbuilding and recently for the AMCA (advanced medium combat aircraft) project. The defence ministry has declared 2025 as the year of reforms aimed at transforming the military into a technologically advanced, combat-ready force capable of tackling new challenges. The nine areas identified by the defence ministry for focused intervention include simplifying weapons buying procedures, setting up of integrated theatre commands for the best use of the military's resources to fight future wars, and new domains such as cyber and space. On May 29, the chief of the air staff Air Chief Marshal AP Singh put the spotlight on the armed forces' agonising wait for new weapons and systems, saying he could not recall a single instance of a project being executed on time, in what was seen as a wake-up call for the country's defence production sector. 'Timelines are a big issue,' Singh said at the time.
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Business Standard
30-05-2025
- Business
- Business Standard
Defence ministry weighs licensing reform; DAP 2020 revision by Nov-end
Defence Secretary Rajesh Kumar Singh calls on private sector to scale up R&D and capital equipment investment while assuring full govt support A more expeditious industrial licensing process in defence is among the suggestions being considered as part of reforms to further enhance competition and private-sector participation in the sector, a government source told Business Standard. This was a day after Defence Secretary Rajesh Kumar Singh underscored the importance of disruptive reforms in licensing and ease of doing business to break down entry barriers in defence manufacturing and support grassroots investors. The revision of the Defence Acquisition Procedure (DAP) 2020 document, aimed at streamlining the defence procurement policy, will be completed within six months — by the end of November — added the source. In line with the decision of the Ministry of Defence (MoD) to observe 2025 as the 'Year of Reforms', a committee under the Additional Secretary and Director General (Acquisition) is driving procedural reforms in DAP 2020. The reforms aim to eliminate redundancies and make the acquisition process more efficient in meeting the needs of the armed forces, while also addressing the pain points of the defence industry, including private firms. Addressing industry leaders at the annual business summit of the Confederation of Indian Industry (CII) in New Delhi, the defence secretary had described the defence industry as the last vestige of the licence permit Raj — because it continues to have industrial licensing under the Industrial Development and Regulation Act. 'This means all the ills of the licensing Raj in terms of delays — getting a licence, which should take six months, takes one to two years, given the need for clearances from the Department of Defence Production, security clearance from the Ministry of Home Affairs, and from the state's Home Department.' Noting that policymakers increasingly recognise that reducing entry barriers and expanding the industrial base are crucial in an era of disruptive technological change, where incumbency may not withstand innovation from upstart firms in modern warfare, Singh outlined four reforms — some already underway — that could give the domestic defence industry a significant fillip. 'The concept of deemed licensing beyond a certain timeframe to put accountability on the government departments concerned; shifting entirely from cost-based pricing to competitive bidding; removing legacy aspects like product reservation for public-sector units; and slashing procurement timelines by weeding out rigid and redundant procedures. These can lead to genuine broadening and diversification of our defence industrial base.' 'At this stage, deemed licensing is one of the suggestions. It still has to be negotiated through the system,' added the source quoted earlier. At present, India has one of the largest defence industrial complexes in the developing world: 16 defence public sector undertakings (DPSUs) under the administrative control of the MoD, over 430 licensed companies, and about 16,000 micro, small and medium enterprises (MSMEs). Highlighting at the CII summit how the MoD would in the past surrender part of the military modernisation budget each year due to protracted procurement procedures, Singh assured change was already underway, but emphasised that more still needed to be done. 'The MoD has already crunched the process timelines for various steps in the procurement cycle. Hopefully, that will save us about 69 weeks overall. It's important, but it's not enough.' Describing DAP 2020, which lays out the country's defence procurement procedures in detail, as a 'voluminous' document, the secretary said: 'It is time for it to be revised wholesale to reflect current realities. It needs shifting from the traditional nomination-based, cost-plus procurement focused mostly on the public sector, to a much more competitive pricing model where both the public and private sectors compete for orders.' Singh also highlighted how for shipbuilding and the Advanced Medium Combat Aircraft (Amca) programme, this approach was already being implemented. 'It's critical because this is increasingly an innovation-led, technology-driven industrial economy that we are witnessing.' Between 2016-17 and 2024-25, India's total defence production nearly doubled — from Rs 74,054 crore to Rs 1.46 trillion (Rs 1,46,000 crore) — while the private sector's contribution rose by over 2.2 times, from Rs 14,104 crore to over Rs 32,000 crore. Yet, its share in overall production remained largely rangebound, fluctuating between 19 per cent and 22 per cent. Assuring private-sector companies that the government was working on improving the ease of doing business, creating a level playing field between them and the DPSUs, and inundating them with a surge of orders, the secretary called for much greater focus from the private sector on research & development (R&D), and on private-sector capital formation through investments in capital equipment, machinery and engineering strength. 'In the longer run, companies which do not have the engineering manpower, or the capital equipment, or the willingness to invest in R&D, should not even think of entering into the defence domain, because your contribution to India's strategic autonomy will be minimal until you make those investments in creating a localised manufacturing ecosystem within the country.' In recent years, the United States and Europe have seen a surge in venture capital-backed military technology unicorns disrupting traditional defence R&D, contracting, and acquisition. Focused on platforms using computer vision, networking, and artificial intelligence, these non-traditional firms have leveraged commercially derived technologies to challenge incumbents like Lockheed Martin. Some have pushed to move beyond cost-plus contracts and are privately funding R&D, developing products without firm orders or specific user requirements, and selling them off the shelf. Their equipment are fast becoming integral to global arsenals, though they still cannot replace the costly manned platforms built by traditional players.
