Page 460 - ES 2020-21_Volume-1-2 [28-01-21]

Fiscal Developments 87

Amendment in CGST Rules (Fourth Amendment) in order to allow opting
Composition Scheme for FY 2020-21 till 30.06.2020 and to allow cumulative
application of condition in rule 36(4)

ii. Special GST Refund Disposal Drive - Implementation of decision to expedite pending
GST and IGST refund claims
iii. Conduct of Personal hearing in respect of any proceeding under Customs Act, 1962
through video conferencing with a view to ensure social distancing and reduce physical
presence.

Annex 3: Initiatives undertaken by the Ministry of Defence for utilization of defence
expenditure and promoting self-reliance in the defence sector.

Budget performance
The allocation of Defence Budget including Civil estimates and Pensions for 2020-21 is
` 4,71,378.00 crore, which is ` 40,367.71 crore over BE 2019-20. Capital Expenditure in absolute
terms has gone up in the past few years. The allocated Capital budget has been fully utilized
since 2016-17, reversing the previous trends of surrender of funds. The trend of underutilization
of Defence Budget has also been reversed from FY 2016-17.

Defence Acquisition Procedure (DAP) -2020:
• Ministry of Defence unveiled the Defence Acquisition Procedure (DAP)-2020 on 28th
September, 2020. DAP-2020 has been aligned with the vision of the Government’s Atma
Nirbhar Bharat and empowering Indian domestic industry through Make in India initiative
with the ultimate aim of turning India into a global manufacturing hub. With the new
Foreign Direct Investment (FDI) policy announced, DAP 2020 has adequately included
provisions to encourage FDI to establish manufacturing hubs both for import substitution
and exports while protecting interests of Indian domestic industry.
• Some of the specific reforms enunciated in Atma Nirbhar Bharat Abhiyan, are as under:

a) Notify a List of Weapons/Platforms for Ban on Import: Relevant incorporation has
been done in the DAP to ensure that NO equipment as mentioned in the list is procured
ex import post timelines notified.
b) Indigenization of Imported Spares:
i. Request for Information (RFI)- RFI stage will explore willingness of the prospective
foreign vendors to progressively undertake manufacture and set up and indigenous
eco system at the spares/ sub component level.
ii. New Category of Buy (Global- Manufacture in India)- The new category
incorporates manufacture of either the entire/part of the equipment or spares/
assemblies/sub-assemblies/Maintenance, Repair and Overhaul (MRO) facility for
the equipment, through its subsidiary in India.

iii. Co-production through IGA (Inter Government Agreement)- This enables
establishment of co-production facilities through IGA achieving ‘Import
Substitution’ and reduce Life Cycle Cost.