Rajnath Singh unveils DAP 2020, approves acquisition of arms & equipment worth Rs 2,290 crore

New Delhi, Sept 28: Heading the Defence Acquisition Council meeting on Monday, Defence Minister Rajnath Singh unveiled the Defence Acquisition Procedure (DAP)-2020 Document. In this meet, he also approved proposals for capital acquisitions of the various equipment required by the Indian Armed Forces worth Rs 2,290 crore. These include procurement from the domestic industry as well as foreign vendors.

 

 

The Minister said, "Happy to unveil the new Defence Acquisition Procedure (DAP)-2020 Document today. The Formulation of DAP 2020 has been done after incorporating comments and suggestions from a wide spectrum of stakeholders." He said that DAP 2020 has been aligned with the Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat and empowering the Indian domestic industry through Make in India initiative with the ultimate aim of turning India into a global manufacturing hub.

 

 

The Ministry said that under the Buy Indian (IDDM) category, the DAC approved procurement of Static HF Tans-receiver sets and Smart Anti-Airfield Weapon (SAAW). The HF radio sets will enable seamless communication for the field units of Army and Air Force and are being procured at an approx. cost of Rs. 540 crore. The Smart Anti Airfield Weapon being procured at an approx. cost of Rs. 970 crore will add to the firepower of Navy and Airforce. Further, to equip the Frontline Troops of the Army the DAC also accorded approval for procurement of SIG SAUER Assault Rifles at a cost of approx. Rs.780 crore.

 

Reviewing Foreign Direct Investment (FDI) Policy in Defence Sector, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry had increased the FDI limit in the defence sector from 49 to 74 per cent under automatic route and beyond 74 per cent through the government route. Speaking on this development Singh, in a tweet, said, "With the new Foreign Direct Investment policy announced, the DAP 2020 has adequately included provisions to encourage FDI to establish manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry."

 

Further, he assured that the categories of Buy(Indian-IDDM), Make I, Make II, Production Agency in Design & Development, OFB/DPSU and SP model will be exclusively reserved for Indian Vendors meeting the criteria of Ownership and Control by resident Indian citizens. Informing about a new procedure, he said, "A new procedure has been included as a new chapter in DAP and structured as an enabling provision for Services to procure essential items through Capital Budget under a simplified procedure in a time-bound manner."

 

Later, in another tweet, he said, "The Offset guidelines have also been revised, wherein preference will be given to the manufacturing of complete defence products over components and various multipliers have been added to give incentivisation in the discharge of Offsets."