Sources said that Parrikar, confronted with industry apprehensions over delay in announcing the model and some of its recommended provisions assured the industry representatives of their view points being accommodated.
Defence minister Manohar Parrikar late on Saturday held a key meeting with Indian defence industry representatives to finalise the 'Strategic Partnership Model' (SPM). Once in place, the SPM will open gates for domestic firms to enter into few critical manufacturing like submarines and aircraft on the lines of the Defence Public sector Undertakings and Ordnance Factories.
Sources said that Parrikar, confronted with industry apprehensions over delay in announcing the model and some of its recommended provisions assured the industry representatives of their view points being accommodated.
Among other things, the industry wants transparency and clarity on minimum bulk orders so that they could plan their investments in setting up the assembly lines even as a committee under VK Atre, former DRDO chief, had been appointed to suggest measures on implementing SPM.
Based on feedback, the Ministry of Defence (MoD) recently made five sub-groups under industry representatives to make specific suggestions on SPM.
A total of six segments have been identified by MoD for strategic partnership in which, instead of the earlier process of handing out the contract to the lowest bidder, private domestic industry will be allowed to participate. These are military aircraft, warships, submarines, armoured vehicles, complex weapons that rely on guidance system, Command and Control System and critical materials (special alloys and composites).
A new Defence Procurement Procedure (DPP) was released by the MoD earlier this year and it came into effect from April 1. While this will allow a bulk of business contracts stuck in the lack of clarity, to be handed to manufacturers, a key component of Make In India, that on Strategic Partnerships which seeks to allow private home-grown industry to be part of critical manufacturing in defence , haven't been finalised yet.
Quite a few Indian industry have shown keenness in Strategic partnership. Notably, of the five companies, were identified last year for country's first 'Make in India' Submarine project, Anil Ambani owned RelianceInfrastructure and Larsen & Toubro were there two besides the state owned manufacturers Cochin Shipyard Limited, Mazagon Dock Limited and Hindustan Shipyard Limited. The Rs 64,000-crore project called P-75 I is for next generation submarines to be built by domestic firms in collaboration with a foreign firm of their choice. However, in the lack of SPM, the contract process for the project has not moved ahead. While six of the total seven chapters of the DPP are out, chapter 6 that dealt with Strategic partnership remains to be fine tuned and released. The MoD has now said SPM will be a different document all together, separate from DPP.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Manohar Parrikar")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}