Leg-up for private sector participation in defence equipment manufacturing

Leg-up for private sector participation in defence equipment manufacturing

News:

1. The Defence Acquisition Council (DAC) approves implementation of Strategic Partnership guidelines

Important facts:

2. Purpose:

• It will revitalize defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon system for future needs of armed forces.
• It will help in boosting private sector participation in domestic defence manufacturing.
• Under this policy one Indian private company would be selected in each segment which would tie-up with shortlisted global equipment manufacturers to manufacture the platforms in India under transfer technology.
• The policy came into effect in May last year but progress was delayed due to the lack of specific guidelines.

3. The SP model has four segments-

a) Submarines

b) Single engine fighter aircraft

c) Helicopters and

d) armoured carriers/main battle tanks

3. Above mentioned segments would be specifically opened up for the private sector.
4. The Defence Acquisition Council (DAC) also approved platform specific guidelines for procurement of Naval Utility helicopters.
5. All procurements under the SP model would be executed by specially constituted Empowered Project Committees to “provide focused attention and ensure timely execution.”
6. The DAC also gave approval for the acquisition of eight Fast Patrol Vessels (FPV) for the Coast Guard. This would be indigenously designed and manufactured.