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Defence ministry approves procurement of items worth Rs 380 crore from startups, MSMEs

The Defence Acquisition Council has cleared procurement of 14 items worth over Rs 380 crore from iDEX startups and MSMEs for Armed Forces.


The Defence Acquisition Council (DAC), chaired by Defence minister Rajnath Singh, cleared the procurement of 14 items worth Rs 380.43 crore from the Innovations for Defence Excellence (iDEX) startups and Micro, Small & Medium Enterprises (MSMEs) on Tuesday. These items will be procured by the Indian Army, Navy, and Air Force.

The DAC also approved the new simplified procedure for procurement from iDEX startups and MSMEs. This would fast-track the procurement from the startups and the MSMEs.

The DAC also approved the simplified procedure for Make-II category projects on similar lines of iDEX procedure and would considerably bring down the time taken from prototype development to contract signing in Make-II projects. Projects under 'Make-II' category involves prototype development of equipments, systems, platforms or their upgrades for import substitution or innovative solutions, for which no government funding is provided for prototype development purposes.


The iDEX was launched by Prime Minister Narendra Modi in 2018 with the objective of fostering innovation and incorporating cutting-edge and disruptive technologies in the Armed Forces in a quick time-frame.


The iDEX scheme has been instituted under the over-arching mission of the defense ministry to achieve self-reliance and indigenisation. The aim is to provide atleast 50 world class solutions to the Armed Forces and the defence industry in the near future.