New Delhi, Aug 28 (KNN) The Defence Acquisition Council (DAC), chaired by Defence Minister Nirmala Sitharaman approved procurement worth Rs 46,000 crore for the three armed forces to boost Prime Minister Modi 'Make in India' initiative but what will be there for MSMEs is not clear, said an Expert.

Speaking to KNN India, Debashis Bandhopadhyay, an Expert on MSMEs, said that the recent release of order for defence platforms to Indian companies is a highly welcome step.

However, the Ministry has not made any clarity regarding what exactly will be there for MSMEs in this procurement order.

He said, “development of tier 2 and tier 3 supply base of MSMEs was a significant element of defence procurement policy 2016 and if the government does not layout a specific plan for involvement of MSMES, the Defence Make in India initiative will reduce to so called screw driver manufacturing.”

The defence ministry procurement will include an order for 111 utility helicopters for the Navy at a cost of over Rs 21,000 crore, the release said.

This is the first project under the Ministry of Defence's prestigious Strategic Partnership (SP) Model that aims at providing significant fillip to the government’s ‘Make in India’ program.

SP Model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM, acquire niche technologies and set up production facilities in the Country.

The DAC also granted approval to a few other proposals amounting to approximately Rs. 24,879.16 crore which include 150 indigenously designed and developed 155 mm Advanced Towed Artillery Gun Systems for the Indian Army (approximate cost of Rs 3,364.78 crore).

In addition, approval has been granted to 24 Multi Role Helicopters, which are an integral part of frontline warships and 14 vertically launched short range missile systems, 10 of which will be indigenously designed.