New Delhi: The Defence Ministry on May 20 broadly finalised a much-awaited policy under which select private firms will be roped in to build military platforms like submarines and fighter jets in India in partnership with foreign entities.
Seen as a major initiative, the ‘strategic partnership model’ aims to create a vibrant defence manufacturing ecosystem in the country through involvement of both the major Indian corporates as well as the MSME sector.
A meeting of the Defence Acquisition Council, the top decision making body of the Defence Ministry, gave the go-ahead to the SP model after deliberating on it for the second time this week. The finer details of the new model is yet to be finalised.
“Breaking new ground, the DAC under the chairmanship of Defence Minister Arun Jaitley finalised the broad contours of a policy aimed at engaging the Indian private sector in the manufacture of high-tech defence equipment in India,” the Defence Ministry said in a statement.
Initially, the policy is expected to be implemented for manufacturing fighter aircraft, submarines and armoured vehicles.
It is expected to be expanded to other segments at a later stage. The Defence Ministry said that the policy envisages establishment of long-term strategic partnerships with Indian defence majors through a transparent and competitive process wherein they would tie up with global OEMs to seek technology transfers to set up domestic manufacturing infrastructure and supply chains.
“The policy will give a boost to the ‘Make in India’ policy in the defence sector and set Indian industry on the path to acquiring cutting-edge capabilities which will contribute to building of self-reliance in the vital sector,” the Ministry said.
Referring to sectors identified to implement the policy, it said additional segments may be added in future.
“Appropriate institutional mechanisms will be set in place to implement the policy,” the Minister said.
A week before, Jaitley had a meeting on the SP model with representatives of defence arms of leading groups including Larsen and Toubro, Ashok Leyland, Mahindra and Mahindra, Reliance Infra, Tata Group, Punj Lloyd, Adani Group and Bharat Forge Ltd.
Source: Kashmir Monitor
