New Delhi: The new Defence procurement policy was cleared by the Centre on Monday, the priority and focus will be to purchase all indigenously designed and developed and manufactured Defence equipment.
Defence Minister Manohar Parrikar said the Defence acquisition council in its marathon three-hour meeting cleared the key provisions of the policy, which will be that from now on, the priority and focus will be to purchase all indigenously designed and developed and manufactured Defence equipment.
Indigenously designed, developed and manufactured equipment must have at least 40 per Indian components and 60 per cent Indian component if the design is not Indian. Department of Defence Production will bear 90 per cent of design and development cost of major systems to encourage Research and Development in the Private Sector.
Small & Medium Scale industries will be given up to Rs 19 crore for design and development and contract within 24 months.