The latest revised DPP-2011 incorporates further refinements, based on the experience of procurement agencies and feedback from the defence industry, both domestic and abroad. The most vital changes relate to the offset policy guidelines which are bound to be wholeheartedly welcomed by the industry.

In yet anot her but vital revision of India’s policy on the Defence Procurement Procedure (DPP), Defence Minister A.K. Antony signed the DPP-2011’ on December 27, effective since January 1. The same was formally released on January 13. In his foreword, Antony reiterated that defence acquisition is a complex decision-making process that needs to balance the competing requirements of expeditious procurement, development of an indigenous defence industry, and conformity to the highest standards of transparency, probity and public accountability. In trying to maintain an optimum balance of the three, more often than not conflicting requirements, the DPP has been put through the mill of continuous reviews to address adequately the apprehensions as well as aspirations of all concerned. Little wonder then that the Defence Procurement Procedure first introduced in 2002 has gone through as many as six ‘upgrades’ to reach the present state.

The latest revised DPP-2011 incorporates further refinements, based on the experience of procurement agencies and feedback from the defence industry, both domestic and from abroad. The most vital changes relate to the offset policy guidelines which are bound to be wholeheartedly welcomed by the industry. The scope of offsets in DPP-2011 makes a departure from the earlier restriction of it being connected to the defence only. The new DPP includes, in addition, civil aerospace, internal security and training within the ambit of eligible products and services also for the discharge of offset obligations (for details see Annexure VI to Appendix D of the document DPP-2011 and Forum).