TIDBITS

Private defence players want their foreign partners included as SPs

By IndianMandarins- 12 Jun 2016
408

private-defence-players-want-their-foreign-partners-included-as-sps Domestic defence players have urged the Defence Ministry to create space for their foreign partners in the chapter on strategic partnerships (SPs) in the new Defence Procurement Procedure (DPP). The Defence Acquisition Council (DAC), which is chaired by Defence Minister Manohar Parrikar, is scheduled to meet on Saturday to discuss the important provisions of the chapter that remains pending. Leading players from the private sector are expected to make their case during the meeting while vying for strategic partnerships in various segments. The 10-member committee that was set up for selecting strategic partners for various platforms from the private sector under VK Aatre, a former scientific adviser to the defence minister, had suggested one or two SPs each in six different segments - aircraft, warships, armoured vehicles, ammunitions, target acquisition and reconnaissance and critical materials. While the Defence Ministry is keen to have two SPs in each segment, the industry wants their foreign partners also be allowed in these segments. This is because some of the big players such as the Tata Group, L&T, Mahindra and Reliance Defence are lobbying to be strategic partners in segments like aircraft, submarines and helicopter. That's because none of the Indian private sector players has ever manufactured aircraft, submarines or helicopters. Besides, this requires foreign partnership for technical know-how and expertise. The Aatre Committee had presented its report to the Defence Ministry in January. However, the new DPP came into effect on April 2 without finalising the SPs.

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