MoD considering doing away with No Cost No Commitment Trials in procurements

India's Military Procurement Establishment is actively considering making payments to Indian and foreign suppliers for user trials of equipment being considered for acquisition.

The current procedure of No Cost No Commitment (NCNC) trials has often been criticised by the global defence and aerospace industry, particularly in the event of multiple competitive tenders being scrapped or foreclosed after contenders have been made to go through extensive and expensive user trials. NCNC is unpopular for making arms bazaar campaigns expensive in an environment where the outcome of the selection process is uncertain.

"We're seized of this requirement. It is on the table for consideration. We're hopeful for a change in procedure in the new avtar of the DPP," the Deputy Chief of the Indian Army (Planning & Systems), Lt General SS Hasabnis announced

A proposal to earmark a fund for paying for user trials is under consideration, and could be incorporated in the new edition of the Defence Procurement Procedure (DPP), which is currently under revision.

"We're seized of this requirement. It is on the table for consideration. We're hopeful for a change in procedure in the new avtar of the DPP," the Deputy Chief of the Indian Army (Planning & Systems), Lt General SS Hasabnis announced in an interaction with Industry during a seminar on 'Army Make Projects - 2019' in New Delhi on October 11. The Deputy Chief (Planning & Systems) is the Army's points person for its procurement programmes.

NCNC is unpopular for making arms bazaar campaigns expensive in an environment where the outcome of the selection process is uncertain

The DPP is under revision by a committee headed by Apurva Chandra, the Director-General Procurements in the Ministry of Defence. Chandra announced last month that the revised DPP will be promulgated by March 2020.