The Indian Army is planning to make big changes in their Defence Procurement plans and it is evident from the recent statement and happenings. In a recent statement, an Army official said that the revised Defence Procurement Manual that is to be released soon might incorporate “long term support agreement” in the indigenization project.
“The Defence Procurement Manual is under revision and the revised manual is expected to be released shortly. This will have many provisions which have been amended to make it easier for industries to take part in the defence manufacturing process,” said Brig. Ratan Kumar, Dy. Dir. Gen., EM (B), Master General of Ordinance.
Master General of Ordinance (MGO) is a branch of the Indian Army whose duty is to ensure the operational readiness of the numerous weapon systems, equipment, and transport vehicles of the Indian Army. It is the duty of this branch to introduce new schemes and plans to improve the usability and efficiency of the systems and equipment.
Brig. Kumar added that the various industries would be facilitated under the new manual to allow them to take part in indigenization projects. The main concern of the industry has been the assurance of orders after they have setup the infrastructure for the manufacture of the Defence equipment. The revised Defence Procurement Manual is trying to address these concerns.
According to Army officials, various concerns of the industry will be addressed in a way where Long-Term Support Agreement (LTSA), in some of the cases, is expected to be added to the revised Defence Procurement Manual. “The arrangement for LTSA would likely be made in the indigenization projects in the revised Defence Procurement Manual. Such arrangement which was earlier absent is actively being considered,” officials said.
Statistics shows that the indigenization in the Defence sector is now at forty percent. In the next five years, the plan of the government is to take the indigenization to almost sixty percent. It is also reported that the government is planning to take the indigenization components to seventy percent in the next ten years.