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Leg-up for private sector participation in defence equipment manufacturing
News:
- The Defence Acquisition Council (DAC) approves implementation of Strategic Partnership guidelines
Important facts:
- 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.
- The SP model has four segments-
a) Submarines
b) Single engine fighter aircraft
c) Helicopters and
d) armoured carriers/main battle tanks
- Above mentioned segments would be specifically opened up for the private sector.
- The Defence Acquisition Council (DAC) also approved platform specific guidelines for procurement of Naval Utility helicopters.
- All procurements under the SP model would be executed by specially constituted Empowered Project Committees to “provide focused attention and ensure timely execution.”
- 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.