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May 14, 2021 11:13 IST
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The Defence Acquisition Procedure is aimed at helping the country gain a stronger foothold on its production of arms and reduce dependence on external agencies.
In August 2020, India’s Defence Minister announced an embargo for 101 Items with the aim to boost indigenisation of defence production. Following this, the Defence Acquisition Procedure (DAP 2020) was announced with a similar aim of defence indigenisation that is to promote self-reliance in defence production and reduce external dependence. Various other steps have been taken like the establishment of defence corridors, and the iDEX initiative among others.
This calls for an understanding of the ‘Why’ behind the government’s recent stance of defence indigenisation, steps taken by them to promote this and the challenges that lie ahead.
Synopsis
The maritime force also recently issued a request for information (RFI) to foreign companies for the lease of 24 twin-engine armed light utility helicopters, with all maintenance support, for a period of five years.
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(This story originally appeared in on May 12, 2021)From mid-air refuelling aircraft and trainer planes to drones, light utility helicopters and minesweepers, the armed forces are increasingly looking to lease military equipment and platforms to plug urgent operational gaps amidst the prevailing fund crunch.
The Army, for instance, is now finalising the lease of four advanced Heron Mark-II medium-altitude long-endurance UAVs (unmanned aerial vehicles) from Israel, while the upgrade of its existing drone fleet takes place, say sources.
Indian Army RFI for Light Tanks Our Bureau 2023
Image for representation only.
The Indian Army wants to procure 350 light tanks and has issued a request for information (RFI) to start the procurement process.
Aside of new generation Combat Vehicle Platforms, the contract should include Transfer of Technology. It will cover Performance Based Logistics, niche Technologies, Engineering Support Package, and other Maintenance and Training requirements, as well also Delivery Schedule.
The Light Tank is planned to be procured under the ‘Make-in-India’ ethos and spirit of the Defence Acquisition Procedure (DAP) – 2020, as per the RFI released on April 22.
The Army wants a modular and upgradable light tank with adequate firepower, protection, surveillance and communication capabilities as well as the versatility to execute operations in varying terrain conditions. Its combat weight should not exceed 25 tons.
Indian Army issues RFI for 350 light tanks janes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from janes.com Daily Mail and Mail on Sunday newspapers.
Why the stock of Mishra Dhatu Nigam is a good long-term bet
Low leverage and decent growth prospects make it a good bet for long-term
Since our last buy call on Mishra Dhatu Nigam (Midhani) in October, 2020, the stock has fallen by about ten per cent. However the positive long term outlook on the company’s prospects remain intact and long term investors can look to buy at current levels.
Midhani is a PSU catering to the needs of India’s strategic sectors such as defence, space, atomic energy and aeronautics by supplying critical materials and alloys. With increased budgetary capital expenditure for defence for FY22 coupled with the newly introduced Defence Acquisition Procedure 2020,business prospects appear good for Midhani.