In a major fillip towards operationalising the strategic partnership (SP) model meant to boost private sector participation in domestic defence manufacturing, Defence Minister Nirmala Sitharaman-led Defence Acquisition Council (DAC) approved the implementation guidelines on Monday.
DAC also gave approval for the acquisition of eight Fast Patrol Vessels (FPV) for the Coast Guard at an approximate cost of Rs 800 crore. These would be indigenously designed and manufactured for undertaking day and night patrolling of the country’s maritime zones
“SP model aims to revitalise 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. The amplifying guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content,” the defence ministry said in a statement.
The SP model, which is the last chapter of the Defence Procurement Procedure (DPP), has four segments — submarines, single engine fighter aircraft, helicopters and armoured carriers/main battle tanks — which would be specifically opened up for the private sector.
Under this policy, one Indian private company would be selected in each of the four segments which would tie-up with shortlisted local Original Equipment Manufacturers (OEM) to manufacture the platforms in India under technology transfer. The ambitious policy came into effect in May last year but progress was delayed due to the lack of specific guidelines.
The DAC also approved platform specific guidelines for procurement of Naval Utility Helicopters (NUH). Similar guidelines for the other categories under the SP model will be issued soon.
The ministry stated that, all procurements under the SP model would be executed by specially constituted Empowered Project Committees (EPC) to “provide focused attention and ensure timely execution”.