India's defence procurement framework stands on the brink of a significant transformation, driven by recommendations from a high-level committee tasked with revamping the Defence Acquisition Procedure (DAP) 2020 into a more agile DAP 2025.

Formed in June under the Director General (Acquisition) with former bureaucrat Apurva Chandra serving as adviser, the panel aims to expedite military modernisation while embedding the principles of Aatmanirbhar Bharat and Make in India.

The committee has conducted several rounds of deliberations, culminating in an initial draft of proposals that promise to reshape acquisition norms. Central to these changes is a shift away from rigid upfront indigenous content (IC) thresholds, which currently impose demanding requirements across DAP 2020's five categories.

For instance, the Buy (Indian-IDDM) category demands over 50 per cent IC from the outset, while Buy (Indian) requires 50-60 per cent, and other categories like Buy (Global Manufacturer in India) stipulate 50 per cent. Even Buy (Global) sets a 30 per cent bar for Indian vendors. These stringent upfront mandates have often deterred participation.

In response, the panel advocates a graded or phased IC approach, allowing vendors to incrementally build local content over time. Under this model, a vendor bidding for IDDM projects might start with 30 per cent IC in the first year, scaling up to 40 per cent within two to three years, before achieving the full 50 per cent threshold.

This flexible structure seeks to lower entry barriers for domestic firms, affording them breathing space to develop capacities, forge supply chains, and integrate local components without immediate compliance pressures. It aligns procurement speed with long-term self-reliance goals.

A standout recommendation introduces a special single-vendor procurement route exclusively for Indian entities, targeting home-grown innovation and research & development. Tailored for specialised, lower-cost equipment, materials, or technologies of urgent operational need, this route caps procurements at ₹100 crore each.

Such items—think night-vision devices or compact drones—could enter service swiftly, bypassing protracted procedures and delivering critical capabilities to the armed forces without delay. This mechanism prioritises immediacy in addressing battlefield gaps.

Should these systems prove their mettle through field trials and sustained performance over five to six years, they would qualify for fast-track channels enabling larger-scale orders. The overarching aim is to foster timely technology access, drive cost-effective import substitution, and bolster indigenous manufacturing ecosystems.

The proposals extend the definition of indigenous content to encompass Buyer Nominated Equipment (BNE), the sub-systems integrated into existing platforms. This inclusion supports import-substitution drives by recognising upgrades to in-service assets as contributions to local content.

Furthermore, components developed in India but requiring overseas processing before re-importation into new acquisitions would also count towards IC norms. This nuance acknowledges global supply chain realities while incentivising domestic origination.

To combat chronic delays from litigation and vendor disqualifications, the committee urges a robust vendor qualification framework integrated into DAP 2025. This system would pre-screen participants, ensuring only committed, technology-mature manufacturers enter tenders, thereby streamlining processes.

The draft emphasises expanded iDEX-style collaborations and joint ventures to hasten advanced technology maturation. Here, defence production licences would flow to manufacturing partners, empowering indigenous firms rich in technical know-how but short on capital or scale.

Incentives for technology transfer and capability-building in high-priority domains—such as semiconductors, advanced materials, and emerging technologies—round out the recommendations. These steps intend to fortify India's defence industrial base, nurturing a resilient ecosystem for enduring self-reliance.

These reforms signal a pragmatic evolution in procurement policy, balancing expedition with indigenisation. By easing thresholds, fast-tracking innovations, and fortifying vendor ecosystems, DAP 2025 could markedly enhance operational readiness and strategic autonomy in an era of heightened geopolitical pressures.

Based On ET News Report