DPP-13 to liberalise defence procurement
- Myanmar says operation on militants was on Indian side of border
- Somnath Bharti's wife accuses him of domestic violence, DCW issues notice
- Debt-stressed Punjab farmer, who met Rahul Gandhi, commits suicide
- Jitender Tomar did not graduate from our varsity: RML Awadh University
- Railways staggers tatkal booking to ease pressure, upto 50 pc refund on cancellation
With the Defence Ministry reluctant to bow down to the Commerce Ministry's demand for an increase in FDI, the new Defence Procurement Policy (DPP-13) will be a watered down version - compromise formula arrived between the two ministries.
Sources told FE, "The Ministry of Commerce had been pressurising the MoD for raising the cap on FDI, however, the new Defence Procurement Policy (DPP-13) that is coming out next month will emphasis will be laid on domestic weapon production over imports in an effort to create more opportunities for the private players to play a crucial role in the defence sector."
The new Defence Procurement Policy (DPP-13) would liberalise defence procurement further. This conformed to industry expectations, as it has been the trend in successive modifications to the Defence Procurement Policy (DPP-13) in 2005, 2006, 2008 and the currently valid Defence Procurement Policy (DPP)-2011.
Last week, defence minister AK Antony announced, "the government is going to have a second look at both the defense procurement procedure and the defense production policy and amend it in a manner so that the industry can take more interest in defense production."
The defence minister is now seen urging both the armed forces, public and private sector to synergise their competencies in creating capabilities for technologies in niche areas. "This would promote self-reliance and foster our endeavor towards modernization. It is important that the private sector emerges as a major player, fully geared to meet various operational requirements of our Armed Forces with requisite knowledge, expertise and wherewithal."
"A strong and vibrant partnership between the public and private sector is crucial for delivering the much-needed defence technological upgradation."
However, defence experts opine, "in an effort to boost homemade production, the government has been saying this for a decade, and yet it still imports a majority of its weapons because the domestic industry is not ready to produce high-tech equipment."