Another measure has been taken by the Defense Industry and Development Organization (DRDO) and the Advanced Technology Vessel Project (ATVP) to support the defense industry as per the approval of Defense Minister Rajnath Singh. Under this, the requirement of performance protection for development contracts has been eliminated. The Ministry of Defense has given information about this.
The Ministry has stated that this will only apply to the development contracts defined in the revised Para 12.5 of the DRDO Defense Procurement Manual, PM 2016. However, warranty bonds will continue to be obtained from the partner to cover the advantages of DRDO / ATVP during the warranty period.
It stated that it would be applicable to all RFPs issued in connection with development contracts after the date of issue of this amendment. Development contracts in which RFPs / contracts have already been issued can be regularized according to the provisions of the RFP / contract to be issued.