Govt to review provisions of Defence Procurement Procedure
The government on Monday indicated that it was reviewing the provisions of Defence Procurement Procedure-2008 to further remove bottlenecks to usher in greater private participation in the defence production sector.delhi Updated: Feb 09, 2009 15:37 IST
The government on Monday indicated that it was reviewing the provisions of Defence Procurement Procedure-2008 to further remove bottlenecks to usher in greater private participation in the defence production sector.
“DPP has been revised for the fourth time in 2008 and it still requires further refining. We are certainly looking into various provisions that needed improvement,” Director General Acquisitions in the Defence Ministry Sashi Kant Sharma told a CII seminar on Defence Offsets in New Delhi.
Since the Defence Ministry opened up the production sector for private participation in the beginning of this Century, applications from 37 companies wanting to manufacture defence equipment had been approved till date, Sharma said.
The government had also opened up the defence sector for foreign participation with a cap in foreign direct investment at 26 per cent, he said.
At present, Sharma said, there were 30 different defence offset related programmes that had been operationalised since 2006 when the offset clause was introduced in defence imports for the first time.
The government also envisaged spending over $ 30 billion for the acquisition of military hardware and software during the 2007-12 11th Five Year Plan, he added.