Second Industry interaction with Director General (Acquisition)
SIDM organized the second interactive session with Mr. Apurva Chandra, DG (Acq) on 4 May 2018 to discuss & understand issues and concerns relating to policy, ‘Make Projects’, pending acquisition cases and enhanced performance parameters.
DG (Acq) asked SIDM to compile industry views on how to improve benchmarking and suggestions on indexing technological parameters.
SIDM regularly organizes interactions with the industry to understand their concerns, apprise them on relevant policy changes and takes these up with the Ministry of Defence and the services.
The interaction was attended by Director General (Acquisition) and eleven other members including acquisition managers, technical managers and finance managers. More than 60 industry leaders from Indian and foreign enterprises participated in the interaction.
Key issues discussed at the interaction are:
- Delay and uncertainty in orders are impacting the industry, particularly MSMEs. There is an urgent need to expedite and approve long-delayed defence acquisition contracts
- Quicker clearances for Make-1 and Make-2 projects are needed. Industries views on how Department of Acquisition can help in hastening clearances/placement of Contracts.
- Department of Acquisition may proactively take steps to build the confidence of OEMs with respect to JV’s as there seems to be a perception that JV’s with 49?I are not getting orders. This would give the much-needed impetus to FDI in defence.
- Incorporation of Trade & Service in DPP policy.
- The possibility of permitting single vendor procurement in cases where there is no competitor.
- For import of service and spares, level playing field vis-a-vis foreign OEMs must be given to Indian companies. Rationalising import & excise duties could be one of the steps in this direction.
- The possibility of considering skill development in aerospace sector for defence offset
- Need for a framework to share the classified information between OEMs and Indian partners
- Measures to implement Enhanced Performance Parameters should be finalized.