Major changes in procurement policy, says Defence Minister Manohar Parrikar

NEW DELHI: The defence ministry is making major changes in its procurement policy, modifying an earlier practice of choosing only the cheapest system, defining strategic partners from the private sector and promoting Indian designed weapon systems, Defence Minister Manohar Parrikar said.

Announcing upcoming changes in the policy - the document will be finalised within two months - the minister said that top priority will be given to Indian Designed, Developed and Manufactured ( IDDM) products. The minister said that a controversial L1 model - to give the contract to the cheapest bidder -will be modified to give a maximum of 10% weightage for 'extra performance'.

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“If a particular system performance is better than the desired qualities but it is not the cheapest, it will be given extra weightage,” the minister said. The government will take two months more to notify the policy as other changes, including Cabinet approval is required, the minister said.

Other improvements, including a strategic partnership model has not yet been finalised and the ministry is also yet to firm up its blacklisting policy as well.