#5. Defence Procurement Procedure 2016
India is world’s largest arms importer and even after 68 years of independence, India imports more than 65% of it’s defence needs. To promote indegenisation and give fillip to domestic industry DPP 2016 was launched at defence EXpo.
Whats new <Copy paste from newscard>
#1. Included a new category to acquire weapons–IDDM (Indigenously Designed, Developed and Manufactured)
#2. IDDM will be the first preferred category of preference
#3. Defence Acquisition Council (DAC) to take a “fast-track” route to acquire weapons, something which was limited to only armed forces till now <who chairs DAC meetings? Who are it’s members? Answer in comments>
#4. Defence export clearances will now be granted online
Let’s look into details
To qualify for IDDM the equipment procured from an Indian vendor would have to be indigenously designed and account for a minimum of 40% of indigenous content (IC) on cost basis.
So far, technology was imported and the products manufactured at home, at cut-rate prices. Now, the emphasis is on ensuring that Indian players tap the best domestic technical intellect, generously invest in R&D, and thereby , retain ownership of the all-important technology applied.
– If the equipment is not indigenously designed, but constitutes 60% IC on cost basis of total contract value, it would be treated as Buy (Indian-IDDM).
– Stressing on the need for domestic sourcing, the policy also increases the minimum IC threshold for other categories.
– For example, under Buy (Indian), an equipment from Indian vendors could be procured, only if it comprises of a minimum of 40% IC on cost basis of the total contract value.
– Make category has been sub classified into 2 parts which would promote SMEs
Good news for foreign investors – threshold for discharging offset obligations has been marked up, from the existing R300 crore to R2,000 crore. Apart from this govt has also decided to fast track the procedures.
All of this will give fillip to make in India and job creation. It will also bring down dependence on imports.
But the all important chapter on strategic partners is yet to be notified.
What more needs to be done-
#1. The FDI ceiling in defence should be revised upward from current 49%. Original equipment makers are not willing to part with their technology when they don’t have control.
#2. Employ multipliers (assigning higher value) where foreign companies manufacture defence wares identified to be of critical need for the services in offset clauses
Read these two very interesting articles
#6. High court allows entry of women in Sani temple
Observations of high court
#1. There is no law that prevents women from entering a place of worship
#2. If men are allowed entry, women should be allowed too
#3. It is the State government’s duty to protect the rights of women
#4. Under the Maharashtra Hindu Place of Worship (Entry Authorisation) Act, 1956, if any temple or person prohibits any person from entering a temple, then he or she faces a six-month imprisonment
We discussed this issue in detail in article landmark judgement: Supreme Court of Hinduism here
