New Delhi, Aug 22 (KNN) The Ministry of Defence is considering to review the ‘No Cost, No Commitment’ (NCNC) trial through industry consultation in order to increase participation of domestic small-scale medium enterprises and startups in the bidding process.

The NCNC basis in case of capital procurements by the Ministry of Defence means that the government neither bears the cost of the trials nor is it committed to buy the products after the trials

The trials are often highly expensive and discourage small and medium enterprises from joining the bidding process.

Colonel Sumit Kapur, Director B in ADG Acquisition Tech (Army), wrote to the industry stating “a study is being undertaken by this office to analyse the suitability of ‘No Cost, No Commitment (NCNC)‘ trials in the present Defence Capital Acquisition process,” reported Hindu Business Line.

The stakeholders were supposed to give comments and recommendations for improvement of the existing system and, if possible, an alternative methodology by August 7.

It is likely that the move would allow a level playing field for indigenous defence companies, especially the startups which are not cash-rich, under the Atmanirbhar Bharat scheme.  (KNN Bureau)