🇮🇳India

Ministry of Defence खरीद प्रक्रिया में सुरक्षा मंजूरी से अनुबंध पुष्टिकरण में देरी

1 verified sources

Definition

Ministry of Defence procurement under Buy (Indian-IDDM) and Buy (Indian) categories mandates that vendors meet specific ownership and control requirements (e.g., minimum 60% Indian ownership for IDDM category, exclusive Indian design/development rights). Verification of these attributes requires cross-checking company shareholding, IPR registrations, and design documentation—a manual process conducted by Defence Ministry procurement teams. Delays in attribute verification prevent purchase orders from being issued and contract signatures from being finalized, extending vendor payment timelines by 90-120 days.

Key Findings

  • Financial Impact: ₹3-15 crore average contract value delayed by 90-120 days = ₹20-40 lakh working capital cost per contract (at 8-10% annual financing cost); typical defence vendor processes 4-8 MOD contracts annually = ₹80-320 lakh annual cash-flow drag
  • Frequency: Per MOD procurement contract; typical defence vendors process 4-8 Government contracts annually
  • Root Cause: Manual verification of Buy (Indian-IDDM) and Buy (Indian) category attributes; no pre-registration of compliance status; lack of central registry for vendor eligibility

Why This Matters

The Pitch: Defence vendors in India experience ₹3-15 crore cash-flow drag annually due to MOD procurement attribute verification delays. Pre-certification registry and automated ownership/IPR compliance checks reduce contract confirmation cycles from 4 months to 2-3 weeks.

Affected Stakeholders

Contracts and Procurement, Finance/Accounts Receivable, Legal (IPR Verification), MOD Procurement Officers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

परिवर्तन नियंत्रण में देरी से लागत वृद्धि

₹250 crores funding cap exceeded by overruns; 20-30% project delays adding 15-25% to costs

बदलाव प्रबंधन में खाली क्षमता हानि

15-25% capacity loss; months of idle equipment per delayed program

परिवर्तन दृश्यता की कमी से निर्णय त्रुटियाँ

10-20% cost escalation from bad decisions; 6-12 months decision delays

निर्माण लागत निर्धारण त्रुटियाँ

₹10-50 lakhs per audit adjustment for misallocated overheads (2-5% of project costs); 20-40 hours/month manual reconciliation

लागत लेखा मानक उल्लंघन

₹5 lakhs to ₹1 crore penalty per violation + 2% monthly interest; cost disallowances up to 10% of claimed expenses

आरएंडडी पूंजीकरण भूलें

₹20-100 lakhs per major project in overstated expenses or understated assets (5-15% of dev costs); audit rework 30-50 hours

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