Rajnath Singh Unveils New Defence Acquisition Procedure

Defence Minister Rajnath Singh unveiled a replacement Defence Acquisition Procedure (DAP) with attention on significantly boosting indigenous production and turning India into a worldwide manufacturing hub of weapons and military platforms.

Singh said the DAP has also included provisions to encourage foreign direct investment (FDI) to determine manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry.

Under the new policy, the offset guidelines have also been revised facilitating preference to defence majors offering to manufacture products in India over relevant components.

“The offset guidelines have also been revised, wherein preference going to be given to manufacture of complete defence products over components and various multipliers are added to offer incentivisation in discharge of offsets,” the defence minister tweeted.

He said the DAP has been aligned with the vision of the government’s ‘Aatmanirbhar Bharat’ (self-reliant India) initiative and to empower Indian domestic industry through ‘Make in India’ projects with the last word aim of turning India into a worldwide manufacturing hub.

The policy also provides for single stage accord of AoN (Acceptance of Necessity) altogether cases up to Rs 500 crore to chop delays in approval of acquisition proposals.