The biennial Defexpo has been receiving good international response due to market forces and has come long way from a Govt organized activity to a Industry business activity. The Foreign OEMs and the Indian defence Industry display their technologies and products and explore opportunities and business potential for mutual benefits. Such events are one of the ways to promote self reliance through private participation. To mark the occasion we are bringing out “INDIAN DEFENCE LAND SYSTEMS AND HOME LAND SECURITY PRODUCTION & PROCURMENT COMPENDIUM-2014” a handy reference document.
The stated focus of these events is to strengthen the defence manufacturing base in the country and making the procurement process more efficient through learning process. However these are not substitute or only alternative for policy initiative. Despite the fact that Indian defence industrial base has own captive market besides, chances of a fair share in sub-continent market. Although Indigenisation has been oft quoted guiding mantras for building Strategic Capabilities, however the ground reality has hardly changed.
This issue focus is on need for Policy initiatives relating to Defence Production and Acquisitions and to create proper ecosystem for Industrial base. While it is agreed, the issues and contradictions relating to parity amongst stake holders, clarity on Industrial Licensing and various issues of indirect taxation such as Customs, Excise taxes and Offset stipulations, requires a inter ministerial coordination and is Department of Defence Production responsibility.
Notwithstanding above, there are some measures which are well with in MOD domain which could be adapted to improve the process with pragmatic approach but the process is slow and lacks momentum. The delays or constraints now are known to those who matters but some how are not addressed. These are mainly procedural such as clarity on requirements, systems, procedures. Some common causes of delays in the procurement process are:
- Failure to properly plan procurement.
- RFI to RFP time line
- Technical specifications, scope of work or terms of reference
- Test & Evaluation subjectivity and time line
- Protracted contract negotiations.
- Reviewing and approving authority timeline
- Offset banking proposal approval
A process whose timeline has been fixed by MOD why it cannot be adhered? There is not a single case where timelines are adhered. This speaks for efficiency and accountability. Avoiding delays in the procurement process not only saves time and cost escalation.