Defence Ministry approves procurement of military platforms, hardware
In a major boost to the defence sector, the Defence Ministry on Tuesday approved the procurement of Rs.8,357 crore worth of military platforms and hardware, including air defence fire control radar and GSAT-7B satellite. All modernization requirements of defence forces will be indigenously sourced, the ministry stated.
The Defence Acquisition Council (DAC), chaired by Defence minister Rajnath Singh, cleared the procurement of 14 items worth Rs.380.43 crore from the Innovations for Defence Excellence (iDEX) startups and Micro, Small & Medium Enterprises (MSMEs) on Tuesday. These items will be procured by the Indian Army, Navy, and Air Force.
Defence minister Rajnath Singh said on Twitter that the DAC accorded Acceptance of Necessity for procurement of 14 iDEX products within 30 months of contract for prototype development. “Simplified iDEX procurement has been introduced. AON to Procurement timelines reduced from 2+ years to 5 months, keeping in line with the innovation ecosystem!” the minister added.
The DAC today accorded AoN for capital acquisition proposals of the Armed Forces amounting to Rs 8,357 crore.
Taking inspiration from PM Shri @narendramodi’s call for #AatmanirbharBharat, all proposals were approved under ‘Buy (Indian IDDM)’category.https://t.co/x65n19d0fM
— Rajnath Singh (@rajnathsingh) March 22, 2022
The Ministry said that the approved proposals also includes “procurement of night sight (image intensifier), light vehicles GS 4X4, air defence fire control radar (light) and GSAT-7B satellite”
It added, “Acquisition of this equipment and systems will enhance operational preparedness of armed forces by providing better visibility, enhanced mobility, improved communication, and increased capability of detecting enemy aircraft.”
The grant of ‘Acceptance of Necessity‘ clears the way for the tendering process to start.
The Ministry noted that as an impetus to “Aatmanirbhar Bharat“, all of the aforementioned proposals have been approved under the “Buy indigenously designed, developed and manufactured (IDDM)” category.
“In a path-breaking initiative to encourage innovation, the DAC also accorded consolidated Acceptance of Necessity for procurements amounting to Rs 380.43 crore from the iDEX startups and MSMEs,” it mentioned.
The Ministry stated that the DAC also approved “effecting” certain policy initiatives in the Defence Acquisition Procedure-2020 to “accelerate the pace of indigenization, achieve self-reliance in defence and to facilitate ease of doing business for defence industry.
One of the policy initiatives “effected” on Tuesday was that all modernization requirements of defence forces will be indigenously sourced and import will be resorted to only as an exception, it said.
Another policy initiative affected in the Defence Acquisition Procedure-2020 was that the vendors whose products are successfully trial evaluated will be provided a certificate to that effect, it noted.
“To reduce the financial burden on defence industry, the requirement of IPBG (Integrity Pact Bank Guarantee) is to be dispensed with and Earnest Money Deposit (EMD) to be introduced as bid security and PCIP (Pre Contract Integrity Pact) cover up to contract stage,” stated another policy initiative which was also initiated on Tuesday.
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