The Defense Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for capital acquisition proposals worth Rs 8,357 crores to the armed forces on Tuesday. For the Army, these include night vision (image intensifier), light vehicles GS 4X4, air defense fire control radar (Light), and the GSAT-7B communication satellite.
“The acquisition of this equipment and systems will improve operational preparedness of the armed forces by providing better visibility, increased mobility, improved communication, and increased capability of detecting enemy aircraft,” according to a statement from the Defence Ministry.
All of these proposals have been approved under the ‘Buy [Indian IDDM (Indigenously Designed, Developed, and Manufactured)]’ category, with a focus on indigenous design, development, and manufacturing in India, as an impetus to ‘Aatmanirbhar Bharat,’ according to the Ministry.
Defense acquisition council given approval
The DAC also granted consolidated AoN for procurements totaling 380.43 crores from index startups and Micro, Small, and Medium Enterprises to encourage innovation (MSME).
DAC approved several policy initiatives in the Defence Acquisition Procedure (DAP) 2020 to speed up indigenization, achieve defense self-reliance, and make it easier for the defense industry to do business. “All defense force modernization requirements must be met locally, with imports used only as a last resort,” the statement said.
To relieve the financial burden on the defense industry, the Integrity Pact Bank Guarantee (IPBG) requirement will be eliminated, and Earnest Money Deposit (EMD) will be used as bid security and PCIP coverage up to the contract stage. EMD will only apply to proposals worth more than Rs 100 crore, with MSMEs and startups exempted, according to the Ministry.
Vendors who have successfully trialed their products will receive a certificate to that effect. Furthermore, the iDEX and Make-II procedures have been simplified, resulting in shorter timelines and early contract placement with successful vendors, according to the statement.