Pipavav Defence, which is now known as Reliance Defence and Engineering Ltd (RDEL) is the top gainer on the BSE currently. Intra day, it rose almost 6% to Rs.69.90 and remains firmly around the same levels.

The market is reacting to the final approval given to the new Defence Procurement Procedure (DPP) by the Ministry of Defence (MoD) yesterday. The new DPP will be tilted in favour of two categories of procurement - the Indigenously Designed and Development Manufacturing (IDDM) and Buy and Make in India. It will also have provision for allowing the DAC to fast track the procedure by bypassing the Acceptance of Necessity process, in urgent cases like requirements if the Special Forces.

The new draft will be available online on March 28 and it will be effective from 1st April’16.

The defence minister was quoted, “We aim to create a good playing ground for indigenous manufacturing." Naturally this means good tidings for RDEL and other companies which make defence equipments in India.