Defence Acquisition Procedure 2020

Defence Acquisition Procedure 2020 (DAP‑2020) is the Ministry of Defence’s consolidated policy that governs every stage of India’s defence procurement, from the articulation of a requirement to the final hand‑over of equipment. Unveiled on 30 March 2020 and operational from 1 April 2020, it replaces the fragmented DAP 2008 framework and introduces novel mechanisms—most notably a leasing option for short‑life platforms such as helicopters and transport aircraft, and a Strategic Partnership Model that obliges private Indian firms to co‑develop or co‑produce high‑value systems with foreign original equipment manufacturers (OEMs). The overhaul is intended to compress the historically protracted acquisition cycle, boost transparency, and embed the “Make in India” agenda at the core of defence spending.

Historical Background

The earlier DAP 2008, issued under the Defence Procurement Procedure of 2008, was criticised for lengthy decision‑making, opaque award processes, and limited scope for private sector participation. A series of high‑profile delays—such as the 2015‑2020 procurement of the Light Combat Aircraft—prompted the Ministry of Defence to commission a review panel headed by former Defence Secretary G. M. Nair. The panel’s 2019 report recommended a single‑window, time‑bound system and the inclusion of leasing as a procurement mode. Consequently, the Government issued the DAP 2020 Gazette Notification (G.S.R. 2020‑03) to codify these reforms.

Mechanism and Procurement Categories

DAP 2020 classifies acquisitions into six principal categories. Direct Purchase applies to items valued up to ₹500 crore (≈ US$66 million) and allows a streamlined, single‑step approval by the Defence Production Board (DPB). Buy (Indigenously) – Category I covers indigenous projects up to ₹500 crore, while Category II addresses those above that threshold, requiring DAC (Defence Acquisition Council) endorsement. The foreign‑sourced equivalents—Buy (Foreign) – Category I and Category II—follow the same monetary split but invoke a mandatory 30 % offset obligation. The Strategic Partnership Model (SPM) is reserved for contracts exceeding ₹5 000 crore, mandating a private Indian partner to assume responsibility for life‑cycle support, technology transfer, and domestic production. Finally, Leasing permits the Ministry to obtain platforms for a maximum ten‑year term, with an option to purchase at fair market value; this mode has already been used for Mi‑17 V5 helicopters and C‑130J transport aircraft.

Key Provisions

Section 3 of DAP 2020 delineates the monetary thresholds (₹500 crore for direct purchase, ₹5 000 crore for SPM) and the associated approval hierarchy. Section 5 mandates a 30 % offset on all foreign procurements, split equally between direct and indirect offsets, and establishes the Defence Offset Committee to monitor compliance. Section 7 prescribes strict timelines: requirement definition within 90 days, approval by the DAC within 180 days, and contract award within 365 days for Category I items. Section 9 requires public disclosure of all approved contracts on the MoD’s e‑procurement portal, enhancing auditability. The procedure also embeds a “single‑window” interface—through the Integrated Defence Procurement Portal (IDPP)—that links the Ministry, services, and the Defence Research and Development Organisation (DRDO) in real time.

Implementation and Current Status

Since its inception, DAP 2020