Govt okays revised defence trade rules
The Ministry of Defence gives nod to the revised defence procurement policy to hasten military procurement and ensure transparency, reports HT Correspondent.Updated: Jul 09, 2008 23:45 IST
The Ministry of Defence has given its approval to the revised defence procurement policy (DPP) to hasten military procurement and bring about greater transparency.
The DPP-2008, approved by the Defence Acquisition Council headed by Defence Minister A. K. Antony on Wednesday, will govern defence deals from August 1. Details of the amendments were hazy, but a defence ministry official said, “It incorporates the cumulative and collective experience of the services and MoD in procurement processes in the last two years. Suitable amendments have been effected for speedier procurement.”
The offset clause of DPP-2006 made it mandatory for foreign vendors to generate commercial activity in India to the extent that 30 to 50 per cent of the value of defence contracts valued over Rs 300 crore needed to be offset by purchases, investments and transfer of technology to India.