What is Defense Procurement Procedure?
Historical Background
India's defense procurement process has evolved significantly over the years. Before 2001, it was largely ad-hoc and lacked a structured framework, leading to delays and allegations of corruption. The first comprehensive DPP was introduced in 2002 to bring transparency and streamline the process.
Subsequent revisions were made in 2005, 2006, 2008, 2011, 2013, and 2016 to address emerging challenges and incorporate new technologies. Each revision aimed to simplify procedures, promote indigenization, and enhance accountability. The most recent major update was in 2020, when the DPP was renamed as the Defense Acquisition Procedure (DAP).
This version places even greater emphasis on 'Make in India' and self-reliance in defense production. The Kargil Review Committee report also played a crucial role in highlighting the need for reforms in defense procurement.
Key Points
12 points- 1.
The DPP/DAP outlines different categories of procurement, including 'Buy (Indian-IDDM),' 'Buy (Indian),' 'Buy and Make (Indian),' 'Buy (Global),' and 'Make.' Each category has different levels of preference for indigenous content.
- 2.
The 'Buy (Indian-IDDM)' category gives the highest priority to procuring equipment that is designed, developed, and manufactured in India with a minimum of 40% indigenous content.
- 3.
The DPP/DAP includes provisions for offsets, which require foreign vendors to invest a portion of the contract value back into the Indian defense industry. This helps to promote technology transfer and develop local capabilities.
- 4.
The Defense Acquisition Council (DAC), headed by the Minister of Defence, is the apex body responsible for approving all major defense acquisitions. It decides on the procurement policies and approves the Acceptance of Necessity (AoN) for projects.
- 5.
The process involves several stages, including identifying the need for equipment, issuing a Request for Information (RFI), formulating the Acceptance of Necessity (AoN), issuing a Request for Proposal (RFP), technical evaluation, field trials, commercial negotiations, and contract award.
- 6.
The DPP/DAP emphasizes transparency and integrity through measures such as pre-contract integrity pacts and post-contract audits. These measures aim to prevent corruption and ensure fair competition.
- 7.
The procedure includes provisions for fast-track procurement in urgent operational situations. This allows for quicker acquisition of essential equipment when there is an immediate need.
- 8.
The DPP/DAP promotes the participation of private sector companies in defense production. This helps to increase competition and innovation in the industry.
- 9.
The procedure includes guidelines for life-cycle support and maintenance of defense equipment. This ensures that the equipment remains operational throughout its service life.
- 10.
The DPP/DAP addresses issues related to intellectual property rights (IPR) and technology transfer. This helps to protect the interests of both Indian and foreign companies.
- 11.
The DAP 2020 introduced the concept of Integrated Capability Development Plan (ICDP) to ensure long-term planning and capability building of the armed forces.
- 12.
The DAP 2020 also introduced a new category for leasing of military equipment to address short-term needs and reduce capital expenditure.
Visual Insights
Evolution of Defense Procurement Procedure in India
Timeline showing the key milestones in the evolution of India's Defense Procurement Procedure, highlighting major revisions and policy changes.
India's defense procurement process has evolved to prioritize transparency, efficiency, and indigenization.
- 2001Kargil Review Committee Report highlights need for defense procurement reforms.
- 2002First comprehensive Defense Procurement Procedure (DPP) introduced.
- 2008DPP revised to include provisions for offsets.
- 2013Further revisions to DPP to simplify procedures and promote indigenization.
- 2016DPP 2016 introduced with greater emphasis on 'Make in India'.
- 2020DPP renamed as Defense Acquisition Procedure (DAP) with focus on acquisition and indigenization.
- 2026Acquisition of Dornier 228 aircraft under DAP, boosting indigenous defense production.
Defense Acquisition Procedure (DAP) 2020
Mind map illustrating the key aspects and categories of the Defense Acquisition Procedure (DAP) 2020.
Defense Acquisition Procedure (DAP) 2020
- ●Procurement Categories
- ●Key Bodies
- ●Objectives
- ●Recent Developments
Recent Developments
8 developmentsIn 2020, the Defense Procurement Procedure was renamed as the Defense Acquisition Procedure (DAP) to reflect a greater emphasis on acquisition rather than just procurement.
The DAP 2020 introduced new categories for leasing of military equipment to reduce capital expenditure and address short-term needs.
The government has been actively promoting indigenization through initiatives like 'Make in India' and 'Atmanirbhar Bharat' in defense.
Recent policy changes have focused on simplifying the procurement process and reducing delays.
Increased focus on using artificial intelligence (AI) and other advanced technologies in defense procurement.
The government is encouraging the participation of startups and MSMEs in defense production through various schemes and incentives.
The Ministry of Defence has been working on creating a positive list of weapons and platforms that will only be procured from Indian companies. This list is periodically updated.
The government is also exploring the use of innovative financing models for defense procurement, such as long-term contracts and public-private partnerships.
This Concept in News
2 topicsIndia approves procurement of 114 Rafale jets and P-8I aircraft
13 Feb 2026The news about the Rafale and P-8I procurement demonstrates several key aspects of the Defense Procurement Procedure. Firstly, it highlights the government's commitment to modernizing the armed forces and enhancing their capabilities. Secondly, it shows how the DAP 2020 is being implemented in practice, with a mix of global and indigenous procurement. The emphasis on manufacturing a majority of the Rafale aircraft in India reflects the 'Atmanirbhar Bharat' initiative and the government's push for self-reliance in defense. This news also raises questions about the efficiency and transparency of the procurement process, as well as the long-term impact on the domestic defense industry. Understanding the Defense Procurement Procedure is crucial for analyzing this news because it provides the context for understanding the rationale behind the procurement decisions, the different categories of procurement, and the role of various stakeholders. Without this understanding, it is difficult to assess the strategic and economic implications of the procurement.
Government Approves Acquisition of Dornier 228 Aircraft for Coast Guard
13 Feb 2026This news highlights the practical application of the Defense Procurement Procedure in acquiring essential equipment for the armed forces. It demonstrates how the DAP facilitates the procurement of defense items from Indian manufacturers, aligning with the 'Make in India' initiative. The acquisition of Dornier 228 aircraft showcases the government's commitment to strengthening the capabilities of the Indian Coast Guard and enhancing maritime surveillance. This event applies the 'Buy (Indian)' category of the DAP in practice. It reveals the ongoing efforts to modernize the Indian defense forces with domestically produced equipment. The implications of this news are that it will boost the Indian defense industry and reduce reliance on foreign suppliers. Understanding the DPP is crucial for analyzing this news because it provides the framework within which such acquisitions take place, ensuring transparency and accountability.
Frequently Asked Questions
61. What is the Defense Procurement Procedure (DPP) and why is it important for India?
The Defense Procurement Procedure (DPP) is a set of guidelines established by the Indian government for acquiring weapons, equipment, and other defense-related items for its armed forces. It's important because it aims to ensure transparency, fairness, and efficiency in the procurement process, while also promoting indigenous defense production and reducing reliance on foreign suppliers.
Exam Tip
Remember the DPP aims for Transparency, Fairness, Efficiency, and Indigenization (TFEI).
2. What are the key categories of procurement outlined in the Defense Procurement Procedure (DPP)?
The DPP outlines different categories of procurement, each with varying levels of preference for indigenous content. These include:
- •Buy (Indian-IDDM): Highest priority to equipment designed, developed, and manufactured in India.
- •Buy (Indian): Procurement of equipment from Indian vendors.
- •Buy and Make (Indian): Involves initial procurement from a foreign vendor, followed by indigenous production through technology transfer.
- •Buy (Global): Procurement from foreign vendors when domestic options are not available.
- •Make: Focuses on indigenous design and development of defense equipment.
Exam Tip
Remember the 'Buy' categories prioritize indigenous content to varying degrees, with 'Buy (Indian-IDDM)' being the most preferred.
3. Explain the role of the Defense Acquisition Council (DAC) in the Defense Procurement Procedure.
The Defense Acquisition Council (DAC), headed by the Minister of Defence, is the apex body responsible for approving all major defense acquisitions. It decides on the procurement policies and approves the Acceptance of Necessity (AoN) for projects. The DAC plays a crucial role in ensuring that defense acquisitions align with the strategic needs of the country.
Exam Tip
Remember that the DAC is the highest decision-making body for defense procurement, headed by the Defence Minister.
4. How does the offset clause in the DPP benefit the Indian defense industry?
The DPP includes provisions for offsets, which require foreign vendors to invest a portion of the contract value back into the Indian defense industry. This helps to promote technology transfer, develop local capabilities, and boost indigenous defense production. Offsets can take various forms, such as investments in Indian companies, technology transfer agreements, or sourcing components from Indian suppliers.
Exam Tip
Offsets are designed to promote technology transfer and boost the Indian defense industry.
5. What are the challenges in implementing the Defense Procurement Procedure (DPP)?
Some challenges in implementing the DPP include:
- •Delays in the procurement process due to bureaucratic hurdles and lengthy procedures.
- •Lack of transparency and accountability in some cases, leading to allegations of corruption.
- •Difficulties in attracting foreign investment and technology transfer due to stringent offset requirements.
- •Inadequate infrastructure and skilled manpower in the Indian defense industry.
- •Balancing the need for indigenous production with the need for advanced technology from foreign sources.
Exam Tip
Implementation challenges often revolve around bureaucratic delays, transparency issues, and infrastructure gaps.
6. How has the Defense Procurement Procedure evolved over time, and what are the recent developments?
The DPP has evolved significantly since its inception in 2002, with revisions in 2005, 2006, 2008, 2011, 2013, and 2016 to address emerging challenges and incorporate new technologies. Recent developments include:
- •In 2020, the Defense Procurement Procedure was renamed as the Defense Acquisition Procedure (DAP) to reflect a greater emphasis on acquisition.
- •The DAP 2020 introduced new categories for leasing of military equipment.
- •Increased focus on indigenization through initiatives like 'Make in India' and 'Atmanirbhar Bharat' in defense.
Exam Tip
Focus on the shift from 'Procurement' to 'Acquisition' and the increased emphasis on indigenization in recent years.
Source Topic
Government Approves Acquisition of Dornier 228 Aircraft for Coast Guard
Polity & GovernanceUPSC Relevance
The Defense Procurement Procedure is important for the UPSC exam, especially for GS Paper 2 (Governance, Polity, Social Justice) and GS Paper 3 (Economy, Security). Questions can be asked about the objectives, key provisions, and recent changes in the DPP/DAP. It is also relevant for the Essay paper, particularly on topics related to national security, defense, and indigenization.
In Prelims, factual questions about the DAC, procurement categories, and offset policies can be asked. In Mains, analytical questions about the effectiveness of the DPP/DAP in promoting self-reliance and reducing corruption are common. Understanding the DPP/DAP is crucial for analyzing current events related to defense acquisitions and policy.