First Industry Interaction with Director General (Acquisition) on Pending Issues

Event Information:

  • Mon, Feb 26 2018
  • New Delhi

Mr. Apurva Chandra, Director General (Acquisition) & Additional Secretary, MoD interacted with industry representatives and briefed them on the status pending issues on 26 February 2018. Issues discussed ranged from the withdrawal of RFPs, export of equipment, UAV’s, single vendor situations etc.

Summary of interactions is appended:

  1. Responding to the request of expediting the process of Light Bullet Proof Vehicles / LAM due to SQRs, DG Acquisition said that few projects have been pending for more than 3 years as the industry is asking for more time to develop a prototype and are demanding SQRs be relaxed. MoD is of the view that if the Indian companies are not able to develop these, they should not accept the terms. However, the industry is of the view that these were pointed out to the services at the time of formulations of SQRs. Therefore it is important that QRs are framed to ensure that there is competition inbuilt in the process for specific technological requirement and provisions for enhanced performance parameters are there in the DPP.
  2. The status of projects should be put in the open domain or be communicated periodically to the industry to keep them updated on the progress.
  3. UAVs be categorized as special projects.
  4. In cases where ab-initio single vendor situation is likely to arise, procurements are very likely to be withdrawn. Thus the need for framing QRs such that only one vendor can qualify.
  5. Reimbursement of taxes and duties will be as per rates and amounts indicated in the commercial bid/contract, or as per actuals, whichever is lower. DG Acquisition advised his officials to look into the issue and make necessary changes in the DPP 2016.
  6. DG Acquisition advised his officials to resolve the issue of exchange rate variation (ERV)
  7. Withdrawal of RFPs – AoN according to authority should be responsible for RFP withdrawal so that the practice is discouraged
  8. CNC meeting minutes to be shared with participating companies so as to remove ambiguity