Government promulgated Defence Procurement Procedure (DPP- 2006) with effect from 1st September, 2006 to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought and time frame prescribed.

DPP-2006 provides for review of the procurement procedure after every two years in the light of the practical experience gained in its implementation.

To encourage participation by Indian companies and strengthen the domestic technical/industrial base, Capital Acquisitions have been categorized in the Defence


Procurement Procedure-2006 as under:-

• Acquisitions covered under the ‘Buy’ decision. Buy would mean an outright purchase of equipment. Based on the source of procurement, this category would be classified as ‘Buy (Indian)’ and ‘Buy (Global)’. ‘Indian’ would mean Indian vendors only and ‘Global’ would mean foreign as well as Indian vendors. ‘Buy Indian’ must have minimum 30% indigenous content if the systems are being integrated by an Indian vendor.
  
  
• Acquisitions covered under the ‘Buy & Make’ decision would mean purchase from a foreign vendor followed by licensed production/indigenous manufacture in the country.
  
  
• Acquisitions covered under the ‘Make’ decision would include high technology complex systems to be designed, development and produced indigenously..