DAC approves major changes in Defence Procurement Procedure

Defence Acquisition Council(DAC) led by Defence Minister Manohar Parrikar has approved major changes to the Defence Procurement Procedure(DPP).

• New DPP will modernize defence acquisitions and give a big push to indigenisation through the ‘Make in India’ initiative.

Highlights

• New category to promote domestic manufacturing, including government funding for R & D and recognition of the MSME in technology development.
• Funds up to 90 per cent of development costs to private companies to push research and innovation
• Brought down the Acceptance of Necessity validity to six months from earlier one year.
• 10 per cent extra weightage will be given if a system displays better qualities than required.