- 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