Defence Procurement Policy Changes

The Ministry of Defence has introduced new policy changes to expedite and streamline military acquisitions for the Indian Armed Forces. The aim is to enhance operational readiness for future conflicts.

Emergency Procurement Clause

• Defence procurements via the emergency route must be delivered within one year of contract signing. Failure to meet this timeline will result in contract cancellation.
• This change addresses delays experienced during the military standoff at the Line of Actual Control in eastern Ladakh.
• Only readily available weapons and ammunition will be procured through this route.

Emergency Powers and Contracts

• Post-Operation Sindoor, services were granted emergency powers, allowing the use of up to 15% of capital budgets for urgent purchases.
• On June 24, contracts worth Rs 1,981.90 crore were signed under the fifth phase of emergency procurement, covering various advanced defence systems.

Historical Context of Emergency Powers

• First granted after the Galwan Valley clash in June 2020, with capital procurement powers up to Rs 300 crore.
• Powers were also granted after the Balakot air strike in February 2019 and the Uri surgical strike in 2016.

Procurement Process Improvement

• Efforts are underway to reduce the defence procurement process from five to six years to two years.
• Field evaluation trials are to be completed within a year, potentially skipping trials for platforms in service with allied nations.
• Steps like issuing RFPs and cost negotiations are targeted for completion within three to six months.

Defence Acquisition Procedure (DAP) Simplification

• A panel led by the Director General (Acquisition) is tasked with simplifying DAP-2020.
• Focus areas include categorisation, ease of doing business, trial conduct, post-contract management, fast-track procedures, and adoption of new technologies like artificial intelligence.