26 January 2016

News Story: India Plans Procurement Policy Revisions

By Vivek Raghuvanshi

NEW DELHI — India, which plans to spend $150 billion on weaponry in the next 10 to 15 years, is considering changes in procurement policy.

However, the first contours of the policy cleared by the government are not being seen as substantively different from current policy. The Defence Procurement Policy-2016 (DPP-2016) is expected to be formally promulgated in two months.

In the run-up to the DPP-2016, the Ministry of Defence raised the level at which mandatory offsets kick in.

"Now mandatory offsets will be discharged by overseas defense companies only when the contract is over $303 million compared to the existing level of $45 million — a relief to overseas defense companies," said an MoD official.

DPP-2016 will be the first defense procurement policy announcement of the Narendra Modi government, which came to power in May 2014.

Read the full story at DefenseNews