Defence Acquisition Procedure 2020 – UPSC GS3

Defence Acquisition Procedure 2020:
  • DAP 2020 is the renamed iteration of the Defence Procurement Procedure (DPP). The first DPP was promulgated in the year 2002.
  • The DAP remains in place for a period of five years. The last DAP was issued in 2016.
Key Features:
  • Notify a List of Weapons/Platforms for Ban on Import: Relevant incorporation has been done in the DAP to ensure that no equipment as mentioned in the list is procured ex import post timelines notified.
  • 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.
  • Revised Offset Guidelines: The Offset guidelines have been revised, wherein preference will be given to manufacture of complete defence products over components and various multipliers have been added to give incentivisation in discharge of Offsets.
  • Project management unit: Setting up of a project management unit (PMU) has been mandated to support contract management. The PMU will facilitate obtaining advisory and consultancy support in specified areas to streamline the acquisition process.
  • FDI in Defence Manufacturing: Provisions have been incorporated like a new category ‘Buy (Global — Manufacture in India)’, to encourage foreign companies to set up manufacturing through its subsidiary in India.
Comparison with DPP 2016:
DPP 2016
DAP 2020
Buy (Indian-IDDM)
Min  40%
Min  50%
Buy (Indian)
Min  40%
Indigenous  design — Min 50%
Otherwise  – Min 60%
Buy & Make (Indian)
Min  50% of Make
Min  50% of Make
Buy (Global — Manufacture in India)
Min  50% of Buy plus Make
Buy (Global)
Min  30% for Indian vendors
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