STRATEGIC PARTNERSHIP 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.