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Defense Acquisition Procedure 2020 - UPSC Notes | Testbook

The Defense Acquisition Procedure (DAP) 2020 underwent a series of amendments recently. These modifications were made following the suggestions of the Defense Acquisition Council (DAC) with the primary objective to boost "Make in India" and promote "Aatmanirbharta" in the defense sector, while simultaneously facilitating Ease of Doing Business .

The subjects involving the localization of defense technology, government initiatives, and security challenges hold significant importance from the GS2 and GS3 viewpoints of the UPSC mains examination.

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An Overview of Defense Acquisition Procedure (DAP)

The Defense Procurement Procedure (DAP) is designed to ensure the prompt acquisition of military platforms, systems, and equipment that fulfill the performance, capability, and quality standards required by the Indian Armed Forces.

  • The DAP encompasses all Capital Acquisitions excluding Works and Land undertaken by the Ministry of Defense (MoD) and Service Headquarters (SHQ) both from domestic sources and imports, with the exception of medical equipment.

The 2020 Amendment of Defense Acquisition Procedure

  • Going forward, irrespective of the type of procurement , all modernization requirements for the Defense Services and Indian Coast Guard are to be sourced indigenously .
    • Capital acquisitions from foreign companies or the import of defense-related equipment should only be an exception and undertaken with explicit approval from DAC/Raksha Mantri.
  • The revised DAP has also eliminated the need for an Integrity Pact Bank Guarantee (IPBG).
    • The requirement for the Integrity Pact Bank Guarantee (IPBG) has been waived off, as suggested by the Ministry of Finance, to reduce the financial burden on the Indian Defense industry while ensuring f
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