With reference to the Draft Defence Procurement Procedure DPP 2020 consider following statements The...........

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With reference to the Draft Defence Procurement Procedure (DPP), 2020, consider following statements:

The Draft proposes increasing the Indigenous Content (IC) stipulated in various categories of procurement by about 10% to support the ‘Make in India’ initiative.
New Category Buy (Global – Manufacture in India) has been introduced with minimum 50% indigenous content on cost basis of total contract value.

Which of the statements given above is/are correct?

1 only

2 only

Both

None

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Explanation:

Defence Minister released Draft Defence Procurement Procedure(DPP), 2020. The policy is aligned with the vision of the government to empower the private industry through the Make in India initiative with the ultimate of turning India into a global manufacturing hub. The Draft proposes increasing the Indigenous Content (IC) stipulated in various categories of procurement by about 10% to support the ‘Make in India’ initiative. New Category Buy (Global – Manufacture in India) has been introduced with minimum 50% indigenous content on cost basis of total contract value. Leasing has been introduced as a new category for acquisition in addition to existing ‘Buy’ & ‘Make’ categories to substitute huge initial capital outlays with periodical rental payments. The scope for Product Support have been widened to include contemporary concepts in vogue, namely Performance Based Logistics (PBL), Life Cycle Support Contract (LCSC), Comprehensive Maintenance Contract (CMC), etc to optimise life cycle support for equipment.