Coinciding with the Modi government’s three-year celebration, the Defence Acquisition Council (DAC) on Saturday cleared the broad contours of the ‘strategic partnership’ (SP) model for defence. The DAC is the top decision-making body on defence procurement, chaired by defence minister Arun Jaitley.
However, the finer details are yet to be worked out before the SP model goes to the Cabinet Committee on Security (CCS) for final approval.
There have been several rounds of meetings between the ministry of defence (MoD) and private sector representatives who shared their inputs before the Saturday meeting.
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The policy is aimed at engaging the Indian private sector in the manufacturing of high-tech defence equipment in India. As per an official statement released by the MoD, the policy is expected to be implemented in a few selected segments to begin with—fighter aircraft, helicopters, submarines and armoured vehicles.
The policy is aimed at developing the defence industrial ecosystem in the country through the involvement of both the major Indian corporate as well as the MSME sector, the statement added.
The SP policy was to be part of the amended Defence Procurement Procedure-2016 (DPP), but has not been finalised till now. As per an estimate, defence projects worth more than $35 billion hinge on the SP model.