Defence ministry eases procurement regulations

Date posted: Wednesday 17 January 2018

The defence ministry has relaxed its procurement norms, making it easier for Indian companies, including start-ups, to supply equipment and other products to the armed forces. Under the so-called Make II category of the Defence Procurement Procedure, (where no government funding is involved in production) industries can now make suo motu proposals to the armed forces, offering to supply products based on their own assessment of requirements. Even if a single individual or firm offers innovative solutions, Service Headquarters will now have the option to accept and process the vendor’s development initiative. Service Headquarters will be allowed to hire domain experts/consultants from private sector to increase outreach and enhance awareness among the industry. Most importantly, there will be no foreclosure of project after the project is sanctioned, except on default by the vendor, to ensure that the successful vendor has assured orders.

(Live Mint)

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