Tuesday, February 5, 2013

AERO INDIA LIVE! Auditor Seeks Efficiency In Indian Procurement Policy


Publication of India's new Defense Procurement Policy has been delayed as a government auditor pushes for more efficiency in the process, including a greater role for the private sector. (Photo: Rakesh Mangaraj, Indian Mod)
February 4, 2013, 2:55 PM
India’s updated Defense Procurement Policy (DPP) for 2013 that was to be released in January is delayed by five or six months, a senior defense ministry official told AIN. TheDPP governs the buying of military weapons and equipment. Recently, the country’s Comptroller Auditor General stated that the previous DPP 2011 is not geared for efficient procurement. “The MoD [ministry of defense] needs to factor this into the DPP 2013 to ensure greater efficiency in acquisition and eliminate discrimination between the private and public sector enterprises,” said an industry analyst with think-tank, Institute for Defense Studies and Analyses (IDSA). Seminars during this week’s Aero India show will focus on issues related to offsets.
In question is whether India has sufficient defense industrial backbone for complex defense platforms manufactured under license. “Rather than focusing on large weapons systems integration and manufacture as the only way [to grow aerospace capability], we need to break down the supply chain into many component parts, so that you become part of a global supply chain…..,” said Air Marshal M. Matherwaran, deputy chief of India’s integrated defense staff.
Having gone through many changes, the DPP for 2013 is also expected to clarify the functioning and organizational structure of the Defense Offset Monitoring Wing set up in August last year to handle post-contract implementation, valuation of offset credits and transfer of technology.
“We need an agency that can physically verify the correctness of the compliance reports…. The MoD does not have the resources to do these checks,” said a senior MoD official.

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