To Speed up Private Sector Project Plan, MoD Makes Key Changes

Date:

New Delhi: Taking note of the possible impact on supplies of spares and services due to the crisis arising out of Russian invasion of Ukraine, feedback from industry keen to enter the defence ecosystem and the ever increasing importance of self-reliance, the defence ministry has brought in key changes to simplify the contract negotiating process and procurement timelines. These changes will accelerate private sector led military design and development projects and lay the platform in signing of significant deals with Indian companies in near term.

According to officials, the five-month deadline for signing of a contract, if a private company led initiative to develop a defence system prototype has been deemed successful is a major change incorporated into procurement rules. This significantly reduces the gap between demonstrating a prototype to the armed forces and signing of a contract that exceeded two years earlier and often resulted in major losses and cancellations.

ads

Similarly, the process of signing the contract has also been simplified, with only five officials now deemed to be part of the contract negotiating committee, thus making clearances a less time consuming and smooth.

By reducing the number of trials required before accepting an industry developed weapon system into service, the ministry has now changed the rules to deem the user assisted trial as the final word, enabling placement of quick orders on the industry.

Another simplification has been to better define the technical specifications of the weapon systems sought by the armed forces. The ministry has now deemed that the Preliminary Staff Qualitative Requirement (PSQR) itself – drawn carefully to include all requirements — would be the final document as far as the industry is concerned, giving companies more clarity on the exact technical specifications desired by the armed forces.

More like this

Yearender Special: Year of Reforms 2025 Sees India Strengthen Defence Capabilities

While the past year was one of reforms, witnessing...

GRSE Strengthens Export Drive; Second MPV Takes Shape with Keel Laying

Kolkata: As a mark of its commitment towards the "Make...

MoD Inks Rs 4,666 Crore Contracts for Close Quarter Battle Carbine & Heavy Weight Torpedoes

New Delhi: Ministry of Defence, on December 30, 2025,...

CSMIA Commissions ‘Taxiway M’ to Strengthen Airside Capacity and Operational Resilience

Mumbai: Chhatrapati Shivaji Maharaj International Airport (CSMIA), Mumbai has commissioned...

Yearender Special: Indian Diplomacy in 2025

India maintained a multi-aligned posture, strengthening ties across diverse...

Army R&R Hospital Successfully Performs India’s First 3D Flex Aqueous Angiography with iStent

New Delhi: In a landmark achievement for Indian medicine,...

Prime Minister Modi’s Visit Strengthens Ties With Oman

Air India One (Boeing 777-300 ER) gently took off...
Indian Navy Special Edition 2025spot_img