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More autonomy to be given to DPSUs, OFBs in defence procurement: Parrikar

Updated: Jan 31, 2015 01:00:48pm
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New Delhi, Jan 31 (KNN)  The Defence Minister, Manohar Parrikar said that the Ministry of Defence would be bringing about major changes in the Defence Procurement Procedure (DPP) and the Defence Production Policy to provide greater autonomy to the Defence Public Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) units for their expansion and diversification.

“We need to delegate powers to DPSUs to enable them to take decisions so that they improve the serviceability of the platforms available to the Armed Forces,” Parrikar said, addressing the Consultative Committee attached to his Minister here on Friday.

“Every machine in operation is like adding additional equipment.  DPSUs will be provided support but they must think like a commercial organisation”, he added.

Earlier, ahead of the new Indian Defence Procurement Policy (DPP) promised by Defence Minister Manohar Parikkar at the Vibrant Gujarat Summit, the micro, small, and medium enterprise (MSMEs) players clamoured to make it simple and industry-friendly at a one-day seminar organised by the Bangalore Chamber of Industry and Commerce (BCIC) in Bengaluru on January-28.

They referred to DPP 2013 which had opened up Rs 90,000-crore offset opportunity for the defence players in defence public sector undertakings (DPSUs), enterprises as well as for the MSME sector, media reports said.

Speaking at the event, Anupam Srivastava, business advisor to SKP Business Consulting, said the offset clause also should encourage Indian SMES to reinvent themselves and be competitive in the market. 

Significantly, the seminar called for MSMEs working on this front to think of quality, delivery, and costs.  (KNN/ES)

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