Thaindian News

New Delhi, Oct 27 (IANS) Under the revised defence procurement policy (DPP) 2009, request for proposal (RFP), which was earlier issued only to foreign companies, would now also be issued to Indian firms having requisite financial and technical capabilities, the government said here Tuesday.
According to Defence Minister A.K. Antony, the move is primarily aimed at encouraging proactive participation by the Indian companies, which could establish joint ventures and production arrangements with any foreign manufacturer.

“The current review in the procurement policy aims at promoting and facilitating Indian industry and transparency and integrity in defence acquisitions. We have reviewed it and are ready to promulgate DPP-2009 with effect from Nov 1,” Antony said at a seminar on defence acquisition here.

He said to ensure transparency and enhanced awareness in the indigenous industry, the government would prepare a public document of the 15-year long-term acquisition plans of the armed forces.

“This would help Indian industry to work out the technological requirements and build in-house capabilities in order to meet the future defence requirements. We are hopeful industry will respond positively to this proposal”, Antony added.

According to the defence ministry officials, a new provision has been added to the procurement procedure that will allow issue of RFP to Indian firms with requisite financial and technical capabilities to absorb technology and undertake indigenous manufacture under a new category, “Buy and Make (Indian)”.

As of now, in “Buy and Make” cases, RFP is issued only to foreign vendors, who are required to transfer technology to the Indian defence industry, also called production agency.

“The difference between the earlier and revised policy is that the production and development by Indian industry will be through transfer of technology and not through research and development,” said a senior ministry official here.

Meanwhile, Air Chief Marshal P.V. Naik said the Indian Air Force supported acquisition of state-of-the-art equipment manufactured by Indian firms.

“The air force would like to sustain a domestic industry for its entire shelf life,” Naik said here on the sidelines of a seminar on Energising Indian Aerospace Industry.

On the involvement of Indian industry during the RFP formation stage, he suggested these firms work with organisations such as the Confederation of Indian Industry (CII) to take the process forward.