Innovations for Defence Excellence                                                                                                                                                                                     

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Context: The Defence Acquisition Council for the first time has cleared the procurement of 14 items worth Rs 380.43 crore from Innovations for Defence Excellence (iDEX) start-ups and MSMEs.

• These items will be procured by the Indian Army, Navy and Air Force.
• DAC also accorded Acceptance of Necessity (AoN) for Capital Acquisition proposals for the Armed Forces amounting to Rs 8,357 crore.

Innovations for Defence Excellence (iDEX)

• The iDEX framework and establishment of the DIO by the Department of Defence Production (DDP) is aimed at promoting innovation and indigenisation in the aerospace and defence sector at the start-up level.
• iDEX will be funded and managed by a “Defence Innovation Organisation (DIO)‟ formed as a “not for profit‟ company as per Section 8 of the Companies Act 2013 for this purpose.
• The scheme, with budgetary support of ₹8 crore for the next five years, is aimed at providing financial support to nearly 300 start-ups, Micro, Small and Medium Enterprises (MSME), individual innovators and 20 partner incubators under the DIO framework
• It aims at empowering a culture of technology co-creation and co-innovation in the sector and boosts innovation among the start-ups and encourages them to be a part of the ecosystem.

About Defence Acquisition Procedure 2020:

• It has been aligned with the vision of the Government  of Atmanirbhar Bharatand empowering Indian domestic industry through Make in Indiainitiative with the ultimate aim of turning India into a global manufacturing hub.
• It has adequately included provisions to encourage FDI to establish manufacturing hubs both for import substitution and exports while protecting interests of Indian domestic industry.  

Salient features of DAP 2020

• Reservation in Categories for Indian Vendors.      The categories of Buy(Indian-IDDM), Make I, Make II, Production Agency in Design &Development, OFB/DPSU and SP model will be exclusively reserved for Indian Vendors meeting the criteria of Ownership and Control by resident Indian Citizens with FDI not more than 49%. This reservation will provide exclusivity in participation to domestic Indian industry.
• Enhancement of Indigenous Content.          

Overall Enhancement in Indigenous Content (IC).

• IC Verification.       A simple and practical verification process has been instituted and  IC will now be calculated on ‘Base Contract Price’ i.e. Total Contract Price less taxes & duties.
• Indigenous Military Material.  Promoting use of indigenous military material with provisions for examination of platforms and other equipment/ systems and reward for vendors for using indigenous raw material.
• Indigenous Software.      Provision for exploring options for operating base applications like Fire  Control  System,  Radars,  Encryption, Communications etc on indigenous software in Buy (Indian- IDDM) & Buy (Indian) cases has been included.
• Make & Innovation

(a)       Make I (Government Funded upto 70%).     Laying down a cap of Rs 250 crore/DA and selection of DAs based on bidding criteria.

(b)       Make II (Industry Funded) for production of indigenously designed & developed weapons/equipment/systems/platforms along with sub components/assemblies.

(c)       Make III (Indigenously Manufactured) category for manufacture of equipment/platforms or spares/assemblies/sub-assemblies for enabling import substitution.

(d)       Procurement of prototypes developed through ‘Innovation’ under various initiatives like iDEX, Technology Development Fund and Internal Services Organisations has been facilitated.

• Design & Development. A separate dedicated chapter has been incorporated in the DAP 2020 for acquisition of systems Designed and Developed by DRDO/DPSUs/OFB. A simplified procedure with Integrated Single Stage Trials to reduce timelines and laying greater emphasis on evaluation through certification and simulation.

https://indianexpress.com/article/india/defence-acquisition-council-approves-procurement-from-start-ups-7831828/