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Understanding DAP 2020: What Changed for Defence Procurement

September 15, 20268 min read
DAPProcurement PolicyDefence

Understanding DAP 2020: What Changed for Defence Procurement


The **Defence Acquisition Procedure (DAP) 2020** represents a significant shift in how India approaches defence procurement. For organisations navigating the Indian defence landscape, understanding these changes is critical to compliance and strategic planning.


Key Changes from DAP 2013


1. Emphasis on Indigenous Procurement

The updated procedure places stronger emphasis on **Make in India** initiatives, requiring higher thresholds for indigenous content before import approvals are granted. This affects:

  • Capital acquisition proposals (CAPs)
  • Technology transfer requirements
  • Offset obligation calculations

  • 2. Streamlined Approval Processes

    DAP 2020 introduces a more streamlined approval hierarchy:

  • Category A — Acquisition by Ministry of Defence (MoD)
  • Category B — Acquisition by Armed Forces / DRDO
  • Category C — Acquisition by Defence PSUs

  • Each category now has clearer timelines and accountability structures.


    3. Strategic Partnership Model

    The introduction of the **Strategic Partnership (SP)** model allows selected Indian industry partners to develop, manufacture, and maintain defence equipment over a long-term horizon — reducing dependency on foreign OEMs for sustainment.


    Impact on Private Sector Participants


    For private defence manufacturers and technology providers:

  • Earlier engagement in the procurement cycle is now encouraged
  • Pre-bid consultations are more structured
  • Indigenous content certification requirements have tightened

  • What This Means for Your Organisation


    If your organisation is involved in defence procurement — whether as a PSU, a private vendor, or a policy advisor — DAP 2020 requires:


    1. **Revised internal procurement policies** to align with new thresholds

    2. **Updated vendor evaluation frameworks** that account for indigenous content scoring

    3. **Strategic planning** around the SP model opportunities




    *This article is part of Ugram's ongoing analysis series on Indian defence and technology procurement policy.*


    **Need guidance on DAP 2020 compliance?** Contact our advisory team(/contact) for a tailored assessment of your organisation's procurement readiness.


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