The Ministry of Defence (MoD) finalised 44 deals worth Rs. 39,955.36 crores in the present financial year that comprised the purchase of helicopters, radar, rockets and simulators, according to Defence Minister Manohar Parrikar.

Besides, a Memorandum of Understanding (MoU) to buy 36 multirole combat jets from the French was also signed in January 2016.

Parrikar gave this information to Rajya Sabha Tuesday.

He also said these purchases were carried on based on the current Defence Procurement Procedure (DPP-2013) which gives priority to indigenous design, development and manufacture of defence equipment by according higher preference to Indian vendors in procurement of defence equipment.

“The new DPP which will come into effect shortly will further promote indigenisation and self-reliance in defence through the public and private sector,” he said.

He added that the new DPP is “under finalisation” and it will also contain measures to ensure probity, accountability and transparency in defence procurements.

Regarding the process of indigenisation of the defence sector, Parrikar stated that the revised DPP 2016, which will come into effect from April 2, will give preference to ‘Buy (Indian)’, ‘Buy and Make (Indian)’ & ‘Make’ categories of capital acquisition over ‘Buy & Make (Global)’ or ‘Buy (Global)’ categories.

“Foreign Direct Investment (FDI) Policy under which foreign investment cap up to 49 per cent is allowed through automatic route and above 49 per cent under government route on case-to-case basis, wherever it is likely to result in access to modern and state-of-art technology in the country will also promote indigenisation,” said Minister of State for Defence Rao Inderjit Singh.

However, foreign investment in defence sector is further subject to industrial license under the Industries (Development & Regulation) Act, 1951.

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