The government will finalise Defence Procurement Policy in next couple of days and this would be notified within 30 days. Defence Minister Manohar Parrikar has announced.

Parrikar told a Make in India Summit that the policy will be private sector supported while ensuring that Public Sector units are not put to disadvantage.

The Defence Ministry has signed defence contracts worth Rs.148,000 crores with different stakeholders in the last 18-19 months, Parrikar said.

The Summit was organised among others by PHD Chamber of Commerce and Industry.

Defence MSMEs numbering about 6000 supply 80 per cent of components, aggregates and assemblies of complex defence weapons system and aircraft.

These 6000 enterprises spread all over the country supply components including hi-tech and sub-assemblies to the defence public enterprises, ordnance factories, DRDO and private industries.

“The DPP-2016 will be supportive to private sector to comprehensively and widely engage it with defence production does not, however,  mean that it would not provide level playing field to defence PSUs as recently experience has shown that with sufficient autonomy with such public sector units, these have survived the test of time and exhibited their competence and expertise while competing with their counterparts in the private sector”, emphasised the Minister.

Source: PHD Chamber