Indian defense ministry likely to finalize Strategic Partnership policy (SP) by this month end to create capacity for arms production in the private sector in segments, including aircraft, helicopters, submarines, warships and armoured vehicles.
The defence ministry is now looking to finalize the long-delayed SP policy for private sector participation in defence production in the country, The Times of India reported Monday.
Chaired by defence minister Arun Jaitley, the defence acquisitions council (DAC) will hold meeting to discuss the SP policy later this month, a defense official said.
The SP model seeks to create capacity for arms production in the private sector on a long-term basis, above the capacity and infrastructure that exist in the defence PSUs. Further it has plans to eventually replace the existing system of awarding contracts only to the lowest bidder (L-1).
The idea comes into existence after reports of Dhirendra Singh and VK Aatre expert committees proposed selection and nomination of Indian private firms as strategic partners for global armament companies to jointly develop weapon systems under the “Make in India” policy.
The DAC meeting will clear the policy. "The contentious issues have more or less been sorted out," said a source.
The broadly identified segments in Group-1 are aircraft, helicopters, aero-engine, submarines, warships, guns and artillery, and armoured vehicles like tanks.
In Group 2 the technology areas figured are Metallic materials and alloys, non-metallic material and ammunition (including smart munitions).
The SP policy supposed to become part of the new Defence Procurement Procedure (DPP) that came into effect in April 2016. However, it remained without being finalized until now, resulting into further delay of proposed projects for a new fighter jet production line as well as the Rs 70,000 crore (US $10.9 billion) project to build six new-generation stealth submarines, which was granted "acceptance of necessity" way back in November 2007.