Lok Sabha Question No. 2290 (UNSTARRED), answered on 2015-12-11
Subject: Defence Procurement Procedure
Ministry: DEFENCE
Asked by: RADHESHYAM BISWAS, KURUPPASSERY VARKEY THOMAS, DHARAM VIRA GANDHI

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE LOK  SABHA

## UNSTARRED QUESTION NO.2290

TO BE ANSWERED ON THE 11 TH  DECEMBER, 2015

## DEFENCE PROCUREMENT PROCEDURE

2290. SHRI  RADHESHYAM BISWAS: PROF. K.V. THOMAS: SHRI DHARAM VIRA:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a)  the salient features of the Defence Procurement Procedure (DPP) being in vogue at present;
- (b)  whether the Government has revised or proposes to revise the DPP on the lines of 'Make in India' programme and if so, the details thereof;
- (c)  whether  the  Government  has  undertaken  measures  to  deal  with  middlemen  and provide for a legal framework in this regard and if so, the details thereof;
- (d)  the  details  of  the  recommendations  of  the  Expert  Committee  constituted  for looking into the DPP 2013; and
- (e)  whether  some  concerns  have  been  raised  by  certain  quarters  including  people's representation regarding the report of the Expert Committee for amendment to DPP 2013 and if so, the details thereof and the action taken thereon?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

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(RAO INDERJIT SINGH)

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(a) to (e):    The objective of Defence Procurement Procedure (DPP)-2013 is  to  ensure  expeditious  procurement  of  the  approved  requirements  of the  Armed  Forces  in  terms  of  capabilities  sought  and  time  frame prescribed  by  optimally  utilising  the  allocated  budgetary  resources. While  achieving  the  same,  it  will  demonstrate  the  highest  degree  of probity and  public accountability, transparency  in operations, free competition  and  impartiality.    In  addition,  the  goal  of  achieving  selfreliance in defence equipment will be kept it mind.

The  DPP-2013  covers all Capital Acquisitions, (except medical equipment)  undertaken  by  the  Ministry  of  Defence,  Defene  Services  and Indian  Coast  Guard  both  from  indigenous  sources  and  ex-import.    DPP2013  provides  for  review  of  the  procurement  procedure  after  every  two years.  Amendments in DPP are also made from time to time as required. The Government appointed a Committee of Experts on 1.5.2015 for amendment  to  DPP-2013  including  formulation  of  policy  framework  to facilitate  'Make  in  India'  in  Defence  Manufacturing.    The  Committee submitted its Report to the Government on 23.7.2015.  The Report includes the  views  and  concerns  of  various  stakeholders.    The  Report  has  been placed in the Public Domain on the Ministry of Defence website.

DPP provides for direct dealing with the Original Equipment Manufacturers  (OEMs)  or  Authorised  Vendors  or  Government  Sponsored Export Agencies (applicable in case of countries where domestic laws do not permit direct export by OEMs).  It also provides that vendor is required to  give  full  details  of  any  agents  /  technical  consultants  /  authorised vendors  that  may  have  been  appointed  by  them  for  marketing  of  this equipment in India.  These details should include the scope of work and responsibilities that have been entrusted with the said party in India.

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