What is Defence Procurement Procedure?
Historical Background
Key Points
12 points- 1.
The DPP/DAP outlines different categories of procurement. These include 'Buy (Indian-IDDM)', 'Buy (Indian)', 'Buy and Make (Indian)', 'Buy (Global – Manufacture in India)', and 'Buy (Global)'. IDDM means Indigenously Designed, Developed and Manufactured.
- 2.
The 'Buy (Indian-IDDM)' category gets the highest priority. This encourages procurement from domestic sources with indigenous design and manufacturing.
- 3.
The DPP/DAP emphasizes a multi-stage approval process. This involves the Defence Acquisition Council (DAC), the Services Capital Acquisition Plan Categorisation Higher Committee (SCAPCHC), and the Contract Negotiation Committee (CNC).
- 4.
The Defence Acquisition Council (DAC), headed by the Defence Minister, is the apex body for approving defence procurements. It decides on policy and gives the go-ahead for major acquisitions.
- 5.
The DPP/DAP includes provisions for offsets. Offsets are obligations on foreign vendors to invest a portion of the contract value in India. This promotes technology transfer and domestic manufacturing.
- 6.
The procedure includes detailed guidelines for Request for Information (RFI), Request for Proposal (RFP), and evaluation of bids. RFI is a request for information, RFP is a request for proposal.
- 7.
The DPP/DAP promotes the use of indigenous content (IC). It sets targets for IC in different procurement categories. This encourages local manufacturing and reduces import dependence.
- 8.
The DPP/DAP includes provisions for dealing with single-vendor situations. It ensures transparency and fairness even when only one vendor is available.
- 9.
The procedure addresses issues related to life-cycle support. This includes maintenance, repair, and overhaul (MRO) of defence equipment.
- 10.
The DPP/DAP incorporates provisions for integrity pacts. These are agreements between the buyer and seller to prevent corruption.
- 11.
The DAP 2020 introduced the concept of 'Leasing' as an acquisition category. This allows the armed forces to lease equipment instead of buying it outright.
- 12.
The DAP 2020 also includes provisions for promoting innovation through the iDEX (Innovations for Defence Excellence) initiative. This supports startups and MSMEs in the defence sector.
Visual Insights
Evolution of Defence Procurement Procedure in India
A timeline showing the evolution of the Defence Procurement Procedure (DPP) in India, highlighting key revisions and policy changes.
The Defence Procurement Procedure has evolved over time to address inefficiencies and promote self-reliance in defence.
- 2002First comprehensive Defence Procurement Procedure (DPP) introduced
- 2016DPP 2016 introduced 'Indigenously Designed, Developed and Manufactured (IDDM)' category
- 2020DPP revised and renamed as Defence Acquisition Procedure (DAP)
- 2025Target to achieve ₹35,000 crore in defence exports
- 2026Tata, L&T, Bharat Forge shortlisted for fighter jet project, reflecting DAP's focus on indigenous production
Recent Developments
10 developmentsThe Defence Acquisition Procedure (DAP) 2020 was released to promote self-reliance and indigenization.
Increased focus on procuring from Micro, Small, and Medium Enterprises (MSMEs) in the defence sector.
Simplification of the procurement process to reduce delays and improve efficiency.
Introduction of a new category for leasing of defence equipment.
Emphasis on using artificial intelligence (AI) and other emerging technologies in defence procurement.
Government initiatives like the 'Strategic Partnership' model to encourage private sector participation in defence manufacturing.
The Defence Ministry has set a target of achieving a turnover of ₹1.75 lakh crore in defence manufacturing by 2025.
Recent changes to offset guidelines to promote technology transfer and investment in critical sectors.
Creation of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu to boost domestic defence production.
The government is actively promoting defence exports to friendly countries.
This Concept in News
2 topicsTata, L&T, Bharat Forge Shortlisted for Fighter Jet Project
17 Feb 2026The news about the AMCA project highlights the 'Make' category of the Defence Procurement Procedure, specifically focusing on indigenous design and development. This news demonstrates the practical application of the DPP/DAP in fostering domestic defence capabilities. The selection of Indian companies for the AMCA project signifies a shift towards greater self-reliance in defence. This news reveals the growing capabilities of the Indian private sector in undertaking complex defence projects. The implications of this news for the DPP/DAP's future are significant, as it validates the policy's effectiveness in promoting indigenous defence production. Understanding the DPP/DAP is crucial for analyzing this news because it provides the context for understanding the government's strategic objectives and the mechanisms through which they are being achieved. It allows for a deeper understanding of the challenges and opportunities associated with defence indigenization and the role of the private sector in this process. The news shows that the DPP/DAP is not just a theoretical framework, but a practical tool for achieving strategic goals.
India Approves Purchase of 114 Rafale Fighter Jets for IAF
13 Feb 2026This news highlights the 'Buy (Global – Manufacture in India)' category of the DAP 2020. It demonstrates how India balances its immediate defence needs with its long-term goal of self-reliance. The news applies the concept of offsets, as the manufacturing of 90 Rafale jets in India will involve technology transfer and investment. This reveals the ongoing efforts to strengthen India's defence industrial base. The implications are that India will gradually reduce its dependence on foreign suppliers. Understanding the DPP/DAP is crucial for analyzing the strategic and economic implications of this deal. It helps to assess whether the deal aligns with India's long-term defence objectives and promotes domestic manufacturing. Without understanding the DPP/DAP, it's impossible to fully grasp the significance of manufacturing a large portion of the Rafale jets in India.
Frequently Asked Questions
61. What is the Defence Procurement Procedure (DPP)/Defence Acquisition Procedure (DAP), and why is it important for India?
The Defence Procurement Procedure (DPP), now known as the Defence Acquisition Procedure (DAP) with the latest version being DAP 2020, is a set of guidelines governing how India buys weapons and military equipment. It aims to ensure transparency, efficiency, and accountability in defence acquisitions. It's important because it modernizes the armed forces and promotes self-reliance in defence production through the 'Make in India' initiative, reducing import dependence.
Exam Tip
Remember that the DPP is now DAP 2020 and focuses on 'Make in India'. This is crucial for both Prelims and Mains.
2. What are the key provisions of the Defence Procurement Procedure (DPP)/Defence Acquisition Procedure (DAP) related to procurement categories?
The DPP/DAP outlines different categories of procurement, each with its own priority. These include: * 'Buy (Indian-IDDM)': Indigenously Designed, Developed and Manufactured. This gets the highest priority. * 'Buy (Indian)' * 'Buy and Make (Indian)' * 'Buy (Global – Manufacture in India)' * 'Buy (Global)'
- •Buy (Indian-IDDM) gets the highest priority, encouraging domestic design and manufacturing.
- •Other categories allow for procurement from Indian and global sources, with varying degrees of domestic manufacturing requirements.
Exam Tip
Focus on the 'Buy (Indian-IDDM)' category and its significance for promoting indigenous defence production.
3. How does the Defence Acquisition Council (DAC) function within the Defence Procurement Procedure (DPP)/Defence Acquisition Procedure (DAP)?
The Defence Acquisition Council (DAC), headed by the Defence Minister, is the apex body for approving defence procurements. It decides on policy and gives the go-ahead for major acquisitions. It is a multi-stage approval process.
Exam Tip
Remember that the DAC is the highest decision-making body and is headed by the Defence Minister.
4. What is the significance of offsets in the Defence Procurement Procedure (DPP)/Defence Acquisition Procedure (DAP)?
Offsets are obligations on foreign vendors to invest a portion of the contract value in India. This promotes technology transfer and domestic manufacturing. It is a key provision to boost the 'Make in India' initiative.
Exam Tip
Understand that offsets are designed to benefit the Indian defence industry by attracting foreign investment and technology.
5. What are the challenges in implementing the Defence Procurement Procedure (DPP)/Defence Acquisition Procedure (DAP)?
Challenges in implementation include: * Delays in the procurement process. * Bureaucratic hurdles. * Ensuring transparency and preventing corruption. * Balancing the need for foreign technology with the goal of self-reliance.
- •The DPP/DAP aims to address these challenges through simplification and increased indigenization.
- •MSMEs also face challenges in participating in defence procurement due to limited resources and capacity.
Exam Tip
Be prepared to discuss the challenges and suggest potential solutions for improving the DPP/DAP.
6. How has the Defence Procurement Procedure (DPP) evolved over time, and what are the key changes introduced in the Defence Acquisition Procedure (DAP) 2020?
The DPP has evolved since its introduction in 2002, with revisions in 2005, 2006, 2008, 2011, 2013, and 2016. Each revision aimed to streamline the process and address shortcomings. DAP 2020 emphasizes self-reliance and indigenization, with increased focus on procuring from MSMEs and simplifying the procurement process.
Exam Tip
Focus on the shift towards indigenization and the specific measures introduced in DAP 2020.