To promote ‘Make in India,’ the defence acquisition procedure has been tweaked.

April 26, 2022

369 1 minute read

Image credit : Private firms can apply to the Commerce Ministry for defence manufacturing licences. (Representational)

The armed services will now be required to source all of their modernisation requirements from within the country
The Defence Acquisition Procedure-2020 has been legally revised to further encourage the drive for 'Make in India' and 'Aatmanirbharta' in arms production, despite the fact that this and other such decisions were announced by the Rajnath Singh-chaired DAC on March 22, as reported by TOI.

The armed services will now be required to source all of their modernisation requirements from within the country, with outright imports of weapons and platforms only permitted with the’specific consent’ of the defence minister and the Defence Acquisitions Council (DAC).

The Defence Acquisition Procedure-2020 has been legally revised to further encourage the drive for ‘Make in India’ and ‘Aatmanirbharta’ in arms production, despite the fact that this and other such decisions were announced by the Rajnath Singh-chaired DAC on March 22, as reported by TOI.

The other adjustments, according to the MoD, include initiatives to “lower the financial burden” on the Indian defence sector while preserving financial safeguards.

For example, IPBGs (integrity pact bank guarantees) are no longer required, and EMD (earnest money deposit) would be used as a bid security for all acquisitions worth more than Rs 100 crore.