Rajnath Singh Releases DRDO's New Procurement Manual To Boost Indigenous Procurement

Union Defence Minister Rajnath Singh released a new procurement manual of the Defence Research and Development Organisation (DRDO), Times of India reports.

The latest handbook focuses on increasing the participation of the Indian industry, start-ups, and MSMEs in the development and design activities.

The threshold limit for the placement of an order on second bidder-2 (L-2) if the L-1 backs out and for advance payments has been increased. Furthermore, an earnest money deposit is encouraged through the bid security declaration option.

“The new DRDO manual will facilitate the indigenous defence industry by simplifying the processes and ensure their participation in design and development activities. It will help towards realising PM Narendra Modi’s dream of ‘Atmanirbhar Bharat’,” Singh stated.

As part of the new measures, bid security and performance security are exempted up to Rs 10 lakh. Moreover, no negotiations would be done on commercial off-the-shelf items and services on instances where the discovery of price happens through market forces.

“The manual will be a boon to the indigenous industry and also ensure swift procurement processes with lots of simplifications. It will also facilitate faster execution of R&D projects and programmes,” chief of DRDO Dr G Satheesh Reddy remarked.

The process for the extension of the delivery period has been simplified to enable faster decision-making. Additionally, the liquidated damages rate for development contracts has also been cut down in the new manual. “Many of the internal procedures have also been further simplified for faster engagement with industry,” an official mentioned.