Rajnath Singh releases new DRDO procurement manual to boost indigenization

NewsBharati    20-Oct-2020
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New Delhi, Oct 20: With an aim to boost indigenisation in the defence sector, Defence Minister Rajnath Singh on Tuesday has approved a new Defence Research and Development Organization (DRDO) Procurement Manual-2020. The procurement manual will encourage more participation in the Indian Industry in research and development activity to facilitate the indigenous Defence Industry.
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Office of Defence Minister (DMO) had announced the approval of a new procurement manual for DRDO to achieve the goal of self-reliant in Defence industry. It said, in a tweet, that this will encourage more participation of the Indian Industry including start-ups and Micro, Small and Medium Enterprises in research and development activity and also to achieve the goal of self-reliance in Defence.
Rajnath Singh said that the new manual will help towards realising Prime Minister Narendra Modi's dream of Atma Nirbhar Bharat. "The new DRDO Procurement Manual will facilitate the indigenous Defence Industry by simplifying the processes and ensuring their participation in design and development activities. PM-2020 will help towards realising Prime Minister Narendra Modi's dream of Atma Nirbhar Bharat," Rajnath Singh tweeted.
New Delhi, Oct 21:To encourage more participation of Indian industry, including Start-ups and Micro, Small & Medium Enterprises (MSMEs) in Defence Research & Development (R&D) for achieving ‘Atmanirbhar Bharat’, Defence Minister Rajnath Singh released a new version of Defence Research and Development Organisation (DRDO) Procurement Manual 2020 (PM-2020).
The PM-2020, will facilitate faster execution of R&D projects/programmes. The modified features the manual will go a long way to facilitate participation of industry in various R&D projects. "Bid security declaration option for earnest money deposit, increase of threshold limit for advance payment, placement of order on lowest bidder 2 (L2) in case L1 backs out are some of the salient features of the new manual, which will assist the industry for the speedy execution of projects," the Defence Ministry said in a statement.
Further, it added that some more enabling measures of PM-2020 are exemption of bid security and performance security up to Rs 10 lakh, no negotiations for commercial off-the-shelf (COTS) items/services wherever price discovery is happening through market forces. "Performance security for service contracts is linked to the payment cycle instead of total contract value. Procurement of stores from development partners, safeguarding of free issue material through insurance cover instead of bank guarantee (BG) are other facilitating measures adopted to help the industry," it said.
In the new PM-2020, the liquidated damage (LD) rate for development contracts has been reduced. The delivery period (DP) extension process has been simplified for faster decision making. Many of the internal procedures have been further simplified for faster engagement with industry. It may be noted that the previous Procurement Manual of DRDO was last modified in 2016.
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