• Defence Acquisition Council (DAC) has approved the Implementation of strategic partnership guidelines.
• Objective: To Enhance defence industries (Domestic) and progressively build indigenous capability in private sector and to develop complex weapon systems for the army.
• It has four components
  

  SUBMARINES

  SINGLE ENGINE FIGHTER AIRCRAFT

  HELICOPTERS

  ARMOURED CARRIES

• Under this policy one Indian Private Company would be selected in each segment mentioned above and will tie-up with their foreign counterpart and work with technology transferred by them.
• DAC also approved acquisition of Eight Fast Patrol Vessels which will be indigenously designed and manufactured.

What is strategic model and why do we need private sector participation?

• Strategic model in defense simply means a struct set of regulations to enhance procurement process.
• In a time when PSU’s are stressed and fiscal deficit has widened, we need more investment from private sector, so we to build ‘Make in India’ Initiative
• Broad based eligibility criteria for selection of private partner’s

  1. Financial capability – Profitability net worth

  2. Financial Prudence – Credit Ratings

  3. Technical Capability – Domain of specialisation

  4. Research and Development Capability – Track Record

  5. Capacitive infrastructure – Global Benchmarks

  6. Executive track record – Timely deliveries

  7. Ownership structure – Private, Public or Promoter