Industry is seeking clarity on legal and liability issues wrt procurement of the 111 naval utility helicopters – the first project approved under Strategic Partnership (SP) Model.
Background:
Strategic Partnership (SP) policy was approved by the Defence ministry in May 2017 as a part of the Defence Procurement Procedure (DPP).
However, progress was delayed due to the lack of specific guidelines. In this background, in July 2018, Defence Acquisition Council (DAC) approved Implementation guidelines for the SP Model.
Objectives:
To reduce current dependence on imports.
To bolster defence manufacturing in India through indigenous private defence firms.
Salient features:
Segments: Under it 4 segments — submarines, single engine fighter aircraft, helicopters and armoured carriers/main battle tanks — would be opened up for the private sector.
Strategic partner:
One Indian private company would be selected in each segment as strategic partner.
It will tie-up with foreign original equipment manufacturers (OEM) to manufacture the platforms in India under technology transfer. (Indian company will have 51% ownership).
Guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content.
All procurements under it would be executed by specially constituted Empowered Project Committees.
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