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Defence Minister ‘Talk Business’ in selection of Strategic Partners

Updated: May 26, 2016 12:26:37pm
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Defence Minister ‘Talk Business’ in selection of Strategic Partners

New Delhi, May 26 (KNN) The Defence Ministry has set up five committees for making specific recommendations within 10 days on manufacturing defence equipment under Strategic Partnership model, said a  Defence Expert.

Strategic Partnership model’ has been suggested in the Defence Procurement Policy 2016 for creating capacity in the private sector on a long term basis for certain platforms  of strategic importance like, Aircrafts, Ships and Submarines, Armoured Vehicles etc. Conceptualised under the ‘Make in India’, these strategic partners will be Indian Companies with long term contract of 20 years or more for development and supply of the platforms.

Defence Minister Manohar Parrikar held a consultative meeting with the industry associations on April 25 to discuss the issue of Strategic Partnership for defence sector from private industry including their selection criteria before formulation of the policy.

After the meeting, Parrikar approved constitution of five sub-groups to initiate focussed discussions on specific platforms.

The sub groups ­ will be headed by different industry bodies ­ that will make specific recommendations for sector like armoured fighting vehicles, aircraft, submarines and ammunition.

Each of the sub group will have industry representative from CII, FICCI, ASSOCHAM, PHDCCI and FISME. The chairman of the group ­ from an industry association ­ will then make a presentation to Defence Minister on the discussions and recommendations.

“These committees will have representations from all the chambers and therefore the recommendation will be of “industry”,” Ashok Kanodia, Founder and Managing Director of Precision Electronics Ltd and a Senior Defence Expert told KNN.

Talking a about the time frame for submitting the recommendations, Kanodia said, “The Defence Minister has said 10 days but this will spill over for the simple reason that the nomination of members in each committee by each of the chamber will take time and then the logistics of such a meeting. I anticipate that 10 days will spill over to min 20.”

He further said the Minister wants a clear policy direction to incentivize the SMEs in the policy/guideline of SP.

The Atre Committee report has identified five priority areas for Make in India in the defence sector. The SP model envisaged participation of more private players for manufacturing in defence, however, the industry bodies have raised concern over the recommendation that only one company be selected for a particular segment like warship production or submarine construction. (KNN Bureau)

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