Capital procurement of defence equipment is carried out as per the extant Defence Procurement Procedure (DPP). DPP-2016 focuses on institutionalizing, streamlining and simplifying defence procurement procedure to give boost to ‘Make in India’ initiative of the Government of India, by promoting indigenous design, development and manufacturing of defence equipment, platforms, systems and sub-systems. Ministry of Defence is committed to the objectives of DPP-2016 and is taking all steps necessary to realize these objectives.
During the last three years and current year (upto October, 2018), out of total 188 contracts, 121 contracts have been signed with Indian vendors including DPSUs / PSUs / OFB and private vendors for capital procurement of defence equipment for Armed Forces such as Helicopters, Naval vessels, Radars, Ballistic Helmets, Artillery Guns, Simulators, Missiles, Bullet Proof Jackets, Electronic Fuzes and ammunition.
Currently, Hindustan Aeronautics Limited (HAL) has firm orders to manufacture platforms like Sukhoi Aircraft, Light Combat Aircraft, Dornier Aircraft, Advance Light Helicopter, Chetak and Cheetal Helicopter, which are likely to be executed in the next 3-4 years.