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Defence Procurement

Plain-language definitions of every Defence Procurement term that shows up in government tender work.


Defence Procurement

Buy (Global) Category

Buy (Global) is the lowest-priority DAP 2020 acquisition category permitting outright import of defence equipment when no Indian vendor can meet the requirement.

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Defence ProcurementIDDM

Buy (Indian, IDDM)

Buy (Indian-IDDM) is the highest-priority DAP 2020 acquisition category, reserved for equipment indigenously designed, developed, and manufactured in India with a minimum 50% indigenous content.

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Defence Procurement

Buy (Indian) Category

Buy (Indian) is a DAP 2020 acquisition category requiring procurement from an Indian vendor with a minimum specified indigenous content, the second-highest priority after Buy (Indian-IDDM).

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Defence Procurement

Buy and Make (Indian) Category

A DAP 2020 defence procurement category where equipment is initially imported and then manufactured in India through technology transfer to an Indian company.

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Defence Procurement

Capital Acquisition

Capital acquisition in Indian defence refers to the procurement of major weapon systems, platforms, and equipment under DAP 2020, funded through the capital budget of the Ministry of Defence.

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Defence ProcurementCFA

CFA (Competent Financial Authority), Defence

The designated authority in India's defence procurement hierarchy who has the financial power to sanction and approve a contract of a given value.

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Defence Procurement

Defence Industrial Corridors

Defence Industrial Corridors are designated manufacturing zones in Uttar Pradesh and Tamil Nadu where the government promotes defence manufacturing clusters with infrastructure, incentives, and anchor investments.

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Defence Procurement

Defence Offset Policy

India's Defence Offset Policy requires foreign vendors winning defence contracts above INR 2,000 crore to invest a minimum 30% of the contract value back into Indian defence industry.

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Defence ProcurementDPM

Defence Procurement Manual

The Defence Procurement Manual governs day-to-day revenue procurement by Indian defence establishments, covering stores, spares, and consumables outside the DAP 2020 capital framework.

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Defence Procurement

Defence PSU Procurement

Defence PSU procurement refers to tenders issued by government-owned defence manufacturing companies like HAL, BEL, BEML, and MDL for materials, components, and services to fulfil their production programmes.

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Defence Procurement

Defence Vendor Registration

Defence Vendor Registration is the mandatory empanelment process that qualifies companies to participate in procurement tenders issued by the Ministry of Defence, Armed Forces, or Defence PSUs.

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Defence ProcurementDRDO

DRDO (Defence Research and Development Organisation)

India's premier defence R&D agency that develops technology for the armed forces and shapes indigenous content requirements in defence procurement.

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Defence Procurement

FDI in Defence Manufacturing

The foreign direct investment rules governing how much equity foreign companies can hold in Indian defence manufacturing entities participating in procurement.

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Defence Procurement

Field Trial

A field trial is the comprehensive operational evaluation of defence equipment in realistic military conditions conducted by the Indian Armed Forces to verify SQR compliance before contract award.

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Defence ProcurementiDEX

iDEX (Innovations for Defence Excellence)

India's defence innovation initiative that funds startups and MSMEs to develop cutting-edge technology for the armed forces through a competitive grant mechanism.

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Defence Procurement

Make Category (Make-I, Make-II)

The Make Category under DAP 2020 funds Indian companies to design and develop complex defence systems through government-funded (Make-I) or self-funded (Make-II) development phases before production.

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Defence Procurement

Make Category (Make-I, Make-II)

A DAP 2020 defence procurement route where Indian companies design and develop defence equipment using their own R&D, with different levels of government funding support.

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Defence ProcurementNCNC

No Cost No Commitment (NCNC) Trial

An NCNC trial is a preliminary technical evaluation where vendors demonstrate their equipment to the Indian Armed Forces at no cost to the government and with no commitment to purchase, preceding formal field trials.

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Defence ProcurementNCNC

No Cost No Commitment (NCNC) Trial

A defence evaluation mechanism where a vendor demonstrates equipment to the armed forces without cost to the government and without any purchase commitment.

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Defence Procurement

Offset Obligations

Offset obligations are the contractually binding commitments made by a foreign defence vendor to invest a percentage of a large Indian defence contract value back into Indian industry.

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Defence Procurement

Ordnance Factory Board

The former government body that operated India's ordnance factories, now corporatised into seven defence public sector companies since 2021.

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Defence ProcurementPCDA

PCDA (Principal Controller of Defence Accounts)

PCDA is the defence accounts authority responsible for pre-audit, payment processing, and financial oversight of all defence procurement expenditure under the Ministry of Defence.

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Defence ProcurementPCDA

PCDA (Principal Controller of Defence Accounts)

The financial audit and payment processing authority for Indian defence procurement that pre-audits contracts and processes contractor payments.

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Defence Procurement

Revenue Procurement (Defence)

Revenue procurement in Indian defence covers the routine purchase of stores, spares, and services by defence establishments under the Defence Procurement Manual, funded from the revenue budget.

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Defence ProcurementSQR

Services Qualitative Requirements (SQR)

The technical specification document that defines what performance, features, and standards a defence equipment must meet to be accepted into Indian armed forces service.

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Defence Procurement

Staff Evaluation

Staff Evaluation is the formal technical assessment report compiled by the Indian Armed Forces' evaluation committee after trials, documenting each vendor's performance against SQR parameters for decision-making.

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Defence ProcurementSP Model

Strategic Partnership Model

The Strategic Partnership Model under DAP 2020 selects a single Indian private company as the strategic partner for major defence platforms, partnering with a foreign OEM to build indigenous manufacturing capability.

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