India Plans More Frequent Procurement Reviews
NEW DELHI - India will review its procurement plans every year, or twice as often as previously, Defence Minister A.K. Antony told lawmakers July 12.
"It has now been decided that in order to infuse greater transparency and to encourage involvement of indigenous industry in defense procurement and to keep pace with changing times, a review of Defence Procurement Policy (DPP) may be undertaken annually," Antony told India's Parliament.
Sources said the next review is under way. A new procurement policy aimed at simplifying offset rules is likely to be announced in August.
In the 2008 DPP, the government permitted offset banking, under which banking credits are to be given to vendors when they buy Indian weaponry or equipment, or invest in Indian research and development. These banking credits can be quoted at the time of competing for any future defense contract. All foreign vendors that enter into a defense contract worth more than $61.2 million must offer offsets.
Currently, such obligations can be discharged through buying or facilitating the export of goods and services from Indian firms, or by investing in Indian organizations engaged in defense research.
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