LEG up for the Private sector Participation

Prelims level : Defence Mains level :
No Set Found with this ID
  • 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
  • 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.
Fast Petrol Vessel: They are highspeed vessels capable of medium endurance patrol and intercept in littoral and Territorial water’s for upto six days and upto 18 persons

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

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