Thread by @nitingokhale

RM @rajnathsingh today unveiled the new Defence Acquisition Process (DAP) 2020. DAP-2020. DAP 2020 will be applicable with effect from 1 Oct 2020. DAP 2020 was under discussion for more than a year, incorporating comments/suggestions from a wide spectrum of defence stakeholders

DAP 2020 has been aligned with the Government's vision of Atmanirbhar Bharat and empowering Indian domestic industry through Make in India initiative with the ultimate aim of turning India into a global manufacturing hub.

Highlights: A list of items banned for import is to be notified; Indigenisation of Imported Spares to be done. RFI stage will explore willingness of the prospective foreign vendors to progressively undertake manufacture and setup an indigenous eco- system at the spares level

A New Category of Buy (Global – Manufacture in India). The new category incorporates ‘manufacture of either the entire/part of the equipment or spares/assemblies/sub-assemblies/Maintenance, Repair and Overhaul (MRO) facility for the equipment, through its subsidiary in India.

For time-bound acquisition, setting up of a Project management unit has been mandated to support contract management. The PMU will facilitate obtaining advisory and consultancy support in specified areas to streamline acquisition process.

Realistic Setting of GSQRs of Weapons/Platforms has been initiated.The process of formulation of SQRs has been further refined with greater emphasis on identifying verifiable parameters based on analysis of ‘Comparative’ equipment available in the World and Domestic markets.

For ease of doing business: Single stage accord of AoN in all cases upto Rs 500 crores has been instituted thereby reducing time. FTP cases, post AoN, will be progressed as per delegated powers thereby reducing the procurement cycle considerably.

The Long Term Integrated Perspective Plan (LTIPP) has been re-designated as Integrated Capability Development Plan (ICDP) covering planning period of ten years instead of 15 years.

Big boost for Indian Vendors. 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

A new option for leasing equipment introduced to enable operating of assets without owning them, will save huge initial capital cost; Another step includes an enabling provision for Services to procure items through Capital Budget under a simplified procedure in a timely manner

Price Variation Clause has been incorporated for large and protracted contracts in order to avert inflated initial quotes by vendors and arriving at a realistic price of the project

Suitable provisions like parallel processing of documents by SHQ/PCDA through digital verification, within laid down timelines, has been included to ensure timely payment to vendors. Most importantly Payments to Indian industry have been aligned with foreign industry.

Should read Defence Acquisition Procedure NOT Process