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India : MAJOR changes announced in Defence Procurement Procedure and the Defence Production Policy
Publish Date : 03-Feb-2015
On Friday, Defence Minister Manohar Parrikar announced major changes in the Defence Procurement Procedure and the Defence Production Policy for making available greater autonomy to the Defence Public Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) units for their expansion and diversification.
During a meeting of Consultative Committee, which was also attended by Congress leaders Mallikarjun Kharge and Ambika Soni, Parrikar said, “We need to delegate powers to DPSUs to enable them to take decisions so that they improve the service of the platforms available to the Armed Forces.” He added, “Every machine in operation is like adding an additional equipment. DPSUs will be provided support but they must think like a commercial organisation.”
Parrikar while referring to the Make in India procedure in defence, stated that it calls for further improvement, adding that, “Defence industry in India is a unique industry where the only customer is the Services.”