Friday 25 May 2018, 05:59 PM
Private industry can now send proposal on directly to MoD
By DM Bureau | Bharat Defence Kavach | Publish Date: 2/16/2018 3:51:28 PM
Private industry can now send proposal on directly to MoD

Private Indian Industry that can make a product, equipment or weapon to be used by armed forces can now just send in proposal suo-moto and not wait to be invited to send in a proposal.The Defence Minister Nirmala Sitharaman has changed the norms that enable greater participation of industry in acquisition of defence equipment. This process is expected to help in substituting imported equipment and promote innovative solutions.The Defence Acquisition Council, chaired by Sitharaman,  at its meeting on January 16, cleared a simplified ‘Make-II’ procedure which will enable greater participation of industry in acquisition of defence equipment.

 This will amend the ‘Make Procedure’ in Defence Procurement Procedure (DPP)-2016 and allow direct proposals from builders instead of the existing system of the Ministry of Defence (MoD) sending out a Request for Information (RFI) that generally goes to integrator or the big established players. The industry, start-ups or individuals can suggest their projects, as per a list put out the armed forces, especially among those items which are currently being imported. The industry or start-up sending the proposal can also have foreign tie-up to the tune of 49 per cent foreign holding, however, but atleast 40 percent of the content has to be Indian made.The suggesting industry will continue to have full intellectual property rights (IPR) , the government  can take controlling rights only in rare and specified circumstances involving national security.

There will be no limit to the number of industry who may respond to the Expression of Interest for development of the prototype subject to meeting the minimum qualification criteria. The design and development time of 12 to 30 weeks will be granted to industry to offer the prototypes. There is no limit to the number of industry players who may show interest and offer prototype. After this selection, a commercial Request for proposal will be issued to the industry which wins the bid and is then assured of an order.

The armed forces have been asked to constitute a project facilitation team for facilitating the process under this procedure. Notably, a case will be progressed even if there is single entity offering an innovative solution, till now the MoD shuns situation where a single entity is the winner or the bidder. Projects involving developmental cost of less than Rs 3 crore will be reserved for Medium and smalls scale enterprises.Meanwhile the Department of Defence Production in the MoD organized a two-day ‘Defence Industry Development Meet’ at Chennai on Jan 18-19.The objective was to forge new partnerships with private industry to achieve self-reliance in defence production. 

 

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Private,Indian,Industry,equipment,controlling,Make Procedure,weapon

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