Defence Minister Manohar Parrikar today said the Ministry will formulate the keenly watched policy for strategic partnership by this month-end after which it will be sent to the Finance Ministry.
He said the final call will be taken by the Cabinet Committee on Security and if all goes well, it should be passed by August-September.
Under strategic partnerships, the government will enter into agreements with private firms in critical sectors of defence manufacturing.
The Ministry has formed five-sub groups to have a focused discussion on the subject. They have already given their presentations before the Minister. The five sub-groups are focused on armoured fighting vehicles (AFV), aircraft and helicopters, submarines, ammunition and macro process management of issues.
Even though the private industry was against the policy in the beginning, they have now conveyed their support for the model but made suggestions to make it more open, instead of restricting a sector to a single entity, as was suggested by a high-level committee.