The policy to boost defence sector, the contours of which were finalised today, will enable greater participation and investment of private players in Defence and Aerospace Sector, industry body CII said. The Defence Acquisition Council (DAC) today finalised the broad contours of a much-awaited policy under which select private firms will be roped in to build military platforms like submarines and fighter jets in India in partnership with foreign entities.
“CII congratulates Defence Minister Arun Jaitley for finalising the broad contours of a long-term strategic partnership with the Indian private sector in defence manufacturing,” the Confederation of Indian Industry (CII) said in a statement.
“This is a path-breaking reform in the defence acquisition procedures of the Ministry of Defence and would enable greater participation and investment of private sector in Defence and Aerospace Sector.
“The combined strength of both public and private sector companies could be fully utilised towards building a strong domestic defence industrial base,” said Chandrajit Banerjee, Director General, CII.
CII hopes the policy will be notified soon as it would facilitate sizable contribution from private industry to defence manufacturing, while developing a sustainable eco- system.
The investments already made by the Indian defence manufacturers would also bear fruits with such an initiative, it added.
With this strategic partnership model, the Defence industry base in the country will be galvanised and MSMEs would be the major beneficiaries of such an eco-system, it said.
Initially, the policy is expected to be implemented for manufacturing fighter aircraft, submarines and armoured vehicles. It is expected to be expanded to other segments at a later stage.