Question

Consider the following statements about revised Defence Procurement Procedure 2016, recently approved by Defence Acquisition Council:

Which of the above statements is/are correct

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C

Both 1 and 2

Defence procurement policy, 2016

The Defence Acquisition Council has approved a revised Defence Procurement Procedure (DPP), aimed at boosting indigenous defence procurement and encouraging better participation from the Indian private sector.

Among its key decisions is a proposal to introduce a new category of acquisition termed Buy Indian (or IDDM, indigenous design development and manufacturing), which would become the most preferred acquisition category. Under Buy Indian, domestically designed equipment with 40 per cent indigenous components or foreign-designed equipment with 60 per cent local components will be considered.

Hierarchy of Categorization

Buy (Indian) :as mentioned above

1. Buy & Make (Indian): buying from foreign/Indian vendor followed by Transfer of Technology and production in India
2. Make (Indian): development of the product in India from scratch
3. Buy (Global) outright purchase from Indian/foreign manufacturers