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Guide 04 Procurement and tendering

DAP 2020 procurement categories explained, and the DAP 2026 draft

The Defence Acquisition Procedure 2020 still governs capital acquisition of new equipment, platforms and systems for the Indian armed forces as of September 2026. It orders five categories by preference, led by Buy (Indian-IDDM), and requires at least 50 percent indigenous content in that category. A draft DAP 2026 exists but is not yet final.

Topic
Procurement and tendering
Checked
23 September 2026
Sources
3
Questions
6

01

DAP 2020 is still in force

As of 23 September 2026, the Defence Acquisition Procedure 2020 remains the governing procedure for capital acquisition: buying new equipment, platforms and systems for the Army, Navy and Air Force. It sits alongside the Defence Procurement Manual, which governs the separate revenue side, spares, repairs, refits and services, currently DPM 2025.

DAP 2020 gives clear priority to indigenous sourcing. Its most preferred route, Buy (Indian-IDDM), means the equipment is Indigenously Designed, Developed and Manufactured by an Indian vendor, and it requires at least 50 percent indigenous content to qualify.

02

Buy (Indian-IDDM): the most preferred route

DAP 2020 orders capital acquisition into five categories, in preference order, with Buy (Indian-IDDM) at the top. Other categories run from an Indian vendor route that may include imported sub-systems down to a direct global purchase with no indigenisation condition. The exact definition of each category sits inside the DAP 2020 text on mod.gov.in; confirm the category named in a specific RFP against that document rather than a summary.

The draft DAP 2026, released 10 February 2026, proposes cutting the five categories to four and raising the Buy (Indian-IDDM) indigenous content floor from 50 to 60 percent, with incentives attached. As of 23 September 2026 none of that is in force.

03

What the draft DAP 2026 would change

The Ministry of Defence released the draft on 10 February 2026 and invited comments until 3 March 2026. As of 23 September 2026 this review found no official notification of a final DAP 2026, so every point below remains a proposal, not a rule a bidder can rely on. Recheck mod.gov.in and PIB before assuming any draft provision applies to a live tender.

  • Indigenous content for Buy (Indian-IDDM) rises from 50% to 60%, with incentives
  • Procurement categories cut from five to four
  • Technology Readiness Level (TRL) based categorisation, allowing a single vendor from the start for equipment already at TRL 6 to 9
  • New Long Term Bulk Acquisition and Low-Cost Capital Acquisition routes
  • Two-stage trials, with compensation for vendors who succeed in trials
  • Make and iDEX projects get spiral development with five years of assured orders

04

DAP governs capital; DPM governs revenue

DAP applies to new equipment, platforms and systems bought from the capital budget. Maintenance, spares, repairs, refits and services for equipment already in service are revenue procurement, governed instead by the Defence Procurement Manual, currently DPM 2025. A new warship system is a DAP case; spares and repair work for a ship already in commission usually falls under DPM 2025.

Technology Readiness Level, a 1 to 9 scale of how mature a technology is, is one concept the draft DAP 2026 leans on: it proposes allowing an ab-initio single vendor under Buy (Indian-IDDM) for equipment already at TRL 6 to 9, meaning it is proven and close to operational use rather than early research.

Asked next

Questions people also ask

DAP 2020 procurement categories explained, and the DAP 2026 draft

Is DAP 2020 still in force?

Yes. As of 23 September 2026, the Defence Acquisition Procedure 2020 remains the governing procedure for capital acquisitions. A draft DAP 2026 was released on 10 February 2026 for comment, but no final notification replacing DAP 2020 has been found. Recheck mod.gov.in and PIB before assuming the draft applies to a live tender.

What is the Buy (Indian-IDDM) category?

Buy (Indian-IDDM) means buying from an Indian vendor equipment that is Indigenously Designed, Developed and Manufactured. It is the most preferred category in defence capital acquisition. DAP 2020 requires at least 50 percent indigenous content in it; the draft DAP 2026 proposes raising that to 60 percent, with a single-vendor route for mature technology.

Has DAP 2026 been released?

Only as a draft. The Ministry of Defence released a draft DAP 2026 on 10 February 2026 and invited comments until 3 March 2026. Once approved it will replace DAP 2020, but as of 23 September 2026 no official notification of a final DAP 2026 has been found, so DAP 2020 still governs capital acquisitions.

What changes does the draft DAP 2026 propose?

The draft cuts procurement categories from five to four, raises indigenous content in Buy (Indian-IDDM) from 50 to 60 percent, adds Long Term Bulk Acquisition and Low-Cost Capital Acquisition routes, introduces TRL-based categorisation and two-stage trials, compensates vendors who succeed in trials, and gives Make and iDEX projects five years of assured orders.

What is the difference between DAP and DPM?

DAP governs capital acquisitions: new equipment, platforms and systems bought from the capital budget. DPM governs revenue procurement: maintenance and sustenance, spares, repairs, refits and services. A new warship system falls under DAP; spares and repair for equipment already in service usually fall under DPM 2025.

What is TRL and why does the draft DAP 2026 use it?

Technology Readiness Level is a 1 to 9 scale of how mature a technology is, from basic research to proven operational use. The draft DAP 2026 proposes TRL-based categorisation, and would allow an ab-initio single vendor under Buy (Indian-IDDM) for equipment already at TRL 6 to 9, rather than requiring a competitive field from the start.

Checked against

Sources

  1. 01Defence Acquisition Procedure and DPM distinction, Press Information Bureau, Ministry of Defence
  2. 02Draft DAP 2026 proposals, Press Information Bureau, Ministry of Defence
  3. 03Defence Procurement Manual page, Ministry of Defence

This guide explains how the system works in general, as the documents above describe it, and was last checked on 23 September 2026. Rules and thresholds change: the governing document is the authority, not this page.

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