Defence Acquisition Council
During 2014-15 and 2015-16, the Defence Acquisition Council (DAC) accorded approval to 66 capital procurement cases at an estimated cost of Rs. 1.98 lakh crore. During 2014-15, 47 capital procurement contracts were signed with value of Rs. 64,859.52 crore. During 2015-16 upto now 44 such contracts have been signed with a value of Rs. 39,955.36 crore. Capital procurements are carried out as per the Defence Procurement Procedure (DPP). The objective of DPP is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought and timeframe prescribed by optimally utilising the allocated budgetary resources. However, pendency sometimes occurs in procurement cases due to several reasons, such as insufficient and limited vendor base, non-conformity of the offers to the Request for Proposal (RFP) conditions, long field trials, complexities in contract negotiations and long lead time for indigenization etc.
This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri R Dhruva Narayana in Lok Sabha today.
DM/NAMPI/RAJ