Question: Consider the following statements:
(1) Rajnath Singh released a new version of Defence Research and Development Organisation (DRDO) Procurement Manual 2020.
(2) DRDO was formed in 1958.
Of the above correct statement/s is/are:
(a) Only 1
(b) Only 2
(c) Both 1&2
(d) None of the above
Answer: (c)
Related facts:
- On 20th October 2020,Defence Minister Rajnath Singh released a new version of Defence Research and Development Organisation (DRDO) Procurement Manual 2020 (PM-2020).
- The manual is in line with ‘Atmanirbhar Bharat’ Abhiyan.
- The manual encourages more participation of Indian industry, including Start-ups and Micro, Small & Medium Enterprises (MSMEs) in Defence Research & Development (R&D).
Key Amendments:
- Bid security declaration option for earnest money deposit, increase of threshold limit for advance payment, placement of order on lowest bidder 2 (L2) in case L1 backs out are some of the salient features of the new manual.
- Some more enabling measures of PM-2020 are exemption of bid security and performance security up to Rs 10 lakh, no negotiations for commercial off-the-shelf (COTS) items/services wherever price discovery is happening through market forces.
- Performance security for service contracts is linked to the payment cycle instead of total contract value.
- Procurement of stores from development partners, safeguarding of free issue material through insurance cover instead of bank guarantee (BG) are other facilitating measures adopted to help the industry.
- The liquidated damage (LD) rate for development contracts has been reduced.
- The delivery period (DP) extension process has been simplified for faster decision making.
By-Amar Mani Upadhyay
Links:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1666125