Defence ministry approves Strategic partnership
By Express News Service | Published: 20th May 2017 05:48 PM |
NEW DELHI: With an aim to make India a hub for manufacturing weapon systems like submarines, fighter jets and armoured vehicles, the ministry of defence on Saturday finally gave its nod strategic partnership model after two years of the hectic deliberations.
On Saturday, the Defence Acquisition Council (DAC), headed by the Defence Minister Arun Jaitley, the highest body on acquisition matters, finalized the broad countour of the policy aimed at engaging the Indian private sector in the manufacturing of high-tech defence equipment in India. Policy paves the way for Indian companies to be allowed to have joint venture with foreign vendors having expertise in the respective sphere be it building submarine, fighter jets and artillery guns.
According to the defence ministry, the policy, which was developed through extensive stakeholder consultations with Indian industry, envisages the establishment of long-term strategic partnerships with qualified Indian industry majors through a transparent and competitive process wherein the Indian industry partners would tie up with global OEMs(original equipment manufacturer) to seek technology transfers and manufacturing know-how 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 the building of self-reliance in the vital sector of national security requirements,” according to a statement issued by the MoD, announcing approval of Strategic Partnership model the Defence Procurement Policy. However, the DAC decision requires an approval from the Cabinet Committee on Security.
Official claim that the policy is aimed at developing the defence industrial eco-system in the country through the involvement of both the major Indian corporate as well as the MSME sector.