Progress on Main Capital Acquisitions

Mr Apurva Chandra, Director General (DG) Acquisition in the Defence Ministry during a seminar highlighted the progress in main procurement cases as under:-

  • Procurement of additional Akash surface-to-air missiles (SAM) worth Rs. 5500 crore, had also been cleared by the Union Cabinet and it would be signed soon with Bharat Electronics.
  • The issue of pricing of 83 Light Combat Aircraft (LCA)-Mk1A, to be manufactured by the Hindustan Aeronautics Limited (HAL), has been finalised. The discussions on the support package are on and the contract could be signed in the next few months.
  • The trials of Indigenous UAV are over and contractual negotiation will start soon.
  • The programmes under Strategic Partnership model are progressing well. The EOI on LUH issued to the OEM and the Indian firms has been responded. RFP is expected by the year end.
  • The EoI for Proj 75-I issued in June 19 to the potential Indian Strategic Partners (SPs) and the response is expected from the OEMs by 15 September 2019.
  • The contract for 15 Light Combat Helicopters is also likely to be signed this year.

The Defence Procurement Procedure (DPP) and the Defence Procurement Manual (DPM) 2009 are currently being revised and the new versions likely by March 2020.The revised DPP would have separate chapters on ship-building, air platforms, Information and Communication Technology (ICT) and one on Make-1, Make-2, iDEX and procurements under Technology Development Fund (TDF). The different sub-committees have already been formed for reviewing various aspects of the DPP.

  • The “Subcommittee on Air Systems”, chaired by the Indian Air Force (IAF) deputy chief, Air Marshal VR Chaudhari.
  • The “Subcommittee on Trial and Testing”, chaired by Air Marshal Rajeev Sachdeva, would simplify and improve the processes of equipment trials.
  • The third subcommittee chaired by DG (Acquisition), would integrate all acquisition processes such as Make-1, Make-2, iDEX and procurements from the Technology Development Fund (TDF) into a unified, common procedure.
  • A subcommittee on information and communication technology (ICT) projects in the revised DPP.

The present DPM has common provisions for all procurements be it civil, stationary or military. The revised version is likely to have three different approaches. The subcommittees will be inviting industry to deliberate and seek their inputs to formalize the DPP and DPM.

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