New defence procurement policy empowers defence secretariat

Government released new defence procurement policy that enables foreign vendors to create offset programme in anticipation of future contract.

Under this new policy regime all defence vendors will be given advance information before release of Request for Proposals in procurement cases, except for those in ‘sensitive’ in nature.

Bidders for Indian weapons contract are now required to sign integrity pact in all deals exceeding Rs 20 crore.

This policy now enhances financial powers of Navy, Army and Airforce HQ for capital acquisition of up to Rs 50 crore and that of Defence Secretary is enhanced to Rs 75 crore.