Defence Acquisition Procedure (DAP), 2020

DAP 2020 has been aligned with the vision of the Government of Atmanirbhar Bharat and empowering Indian domestic industry through Make in India initiative with the ultimate aim of turning India into a global manufacturing hub.

  • The Defence Procurement Procedure (DPP) was first initiated in 2002 and has since been revised periodically to provide impetus to the growing domestic industry and achieve enhanced self-reliance in defence manufacturing.
  • The aim of the Defence Acquisition Procedure (DAP), erstwhile Defence Procurement Procedure (DPP), is to ensure timely acquisition of military equipment, systems and platforms as required by the Armed Forces in terms of performance, capabilities and quality standards, through optimum utilisation of allocated budgetary resources.

Salient Features of DAP 2020

1. Reservation in Categories for Indian Vendors: The categories of Buy (Indian-IDDM), Make I, Make II, Production Agency in Design & Development, Ordnance Factory/Defence Public Sector Undertaking model will be exclusively reserved for Indian Vendors meeting the criteria of Ownership and Control by resident Indian Citizens with FDI not more than 49%. This reservation will provide exclusivity in participation to domestic Indian industry.

2. Enhancement of Indigenous Content: It includes overall enhancement in Indigenous Content (IC); calculation of IC on ‘Base Contract Price’ i.e. Total Contract Price less taxes & duties ; reward for vendors for using indigenous raw material and use of indigenous software.

No

Category

DPP 2016

DAP 2020

1

Buy (Indian-IDDM)

Min 40%

Min 50%

2

Buy (Indian)

Min 40%

Indigenous design – Min 50%

Otherwise – Min 60%

3

Buy & Make (Indian)

Min 50% of Make

Min 50% of Make

4

Buy (Global – Manufacture in India)

-

Min 50% of Buy plus Make

5

Buy (Global)

-

Min 30% for Indian vendors

3. Rationalisation of Trial and Testing Procedures: Appropriate certification confirming functionality of testing equipment needs to be obtained. Further, scope of trials will be restricted to physical evaluation of core operational parameters, other parameters may be evaluated based on vendor certification, certification by accredited laboratories, computer simulations of parameters.

4. Make & Innovation: Besides Make I/II/III which are government and industry-funded efforts towards achieving greater indigenization of manufacturing, the Innovations for Defense Excellence (iDEX) was set up for incubation and infrastructure support to startup enterprises in the sector.

5. Design & Development: There is provision for acquisition of systems Designed and Developed by DRDO/Defence PSUs/Ordnance Factories.

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