DAC Approves Strategic Partnership Guidelines | 31 Jul 2018

In a step to boost private sector participation in domestic defence manufacturing, the Defence Acquisition Council (DAC) approved the implementation of Strategic Partnership (SP) guidelines to reduce timelines so as to ensure timely delivery of equipment to the Armed Forces

• The DAC has also approved platform-specific guidelines for procurement of Naval Utility Helicopters.

Key Highlights

• Strategic Partnership model aims to revitalise defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon system for future needs of armed forces.
• The guidelines lay emphasis on promoting higher indigenous content and to incentivise the transfer of niche technology thus giving a major fillip towards encouraging self-reliance and aligning the defence sector with the 'Make in India ' initiative of the Government.
• The SP model has four segments — submarines, single-engine fighter aircraft, helicopters and armoured carriers/main battle tanks — which would be specifically opened up for the private sector.
• Under this policy, one Indian private company would be selected in each segment which would tie-up with shortlisted global equipment manufacturers to manufacture the platforms in India under technology transfer.
• All procurements under the SP model would be executed by specially constituted Empowered Project Committees to provide focussed attention and ensure timely execution.