Sanjha Morcha

Pvt firms can directly propose to make military weapons now

Tribune News Service

New Delhi, January 17The private industry that can make a product, equipment or weapon to be used by armed forces can now just send in proposal suo-moto and not wait to be invited to send in a proposal.Defence Minister Nirmala Sitharaman has changed the norms that enable greater participation of the industry in acquisition of defence equipment. This process will greatly help in substituting imported equipment and promote innovative solutions.This will amend the ‘Make Procedure’ in Defence Procurement Procedure (DPP)-2016 and allow direct proposals from builders instead of the existing systems of the MoD sending out a Request for Information (RFI) that generally goes to integrator or the big established players.The industry, start-ups or individuals can suggest their projects, as per a list put out by the armed forces, especially among those items which are currently being imported. The industry or start-up sending the proposal can also have foreign tie-up to the tune of 49 per cent foreign holding, however, but at least 40 per cent of the content has to be Indian made.The suggesting industry will continue to have full intellectual property rights (IPR), the government can take controlling rights only in rare and specified circumstances involving national security.There will be no limit to the number of industries who may respond to the Expression of Interest for development of the prototype subject to meeting the minimum qualification criteria. The design and development time of 12 to 30 weeks will be granted to industry to offer the prototypes. There is no limit to the number of industry players who may show interest and offer prototype.After this selection, a commercial request for proposal will be issued. The industry which wins the bid is assured of an order.