New Defence Acquisition Procedure

  • Defence Minister unveiled a new Defence Acquisition Procedure (DAP) with a focus on significantly boosting indigenous production and turning India into a global manufacturing hub of weapons and military platforms.
  • DAP has also included provisions to encourage foreign direct investment (FDI) to establish manufacturing hubs both for import substitution and exports while protecting the interests of Indian domestic industry.
  • Under the new policy, the offset guidelines have also been revised facilitating preference to defence majors offering to manufacture products in India over relevant components.
  • The policy also provides for single stage accord of AoN (Acceptance of Necessity) in all cases up to Rs 500 crore to cut delays in approval of acquisition proposals.