The Ministry of Defence approved the procurement of 111 helicopters for the Navy under the Strategic Partnership model at a cost of Rs 21,738 crore that is aimed at enhancing military capabilities by indigenously allowing Indian manufacturers to partner with foreign firms.

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The government will now start the process to identify a foreign helicopter maker and an Indian defence firm for a joint venture for the project.

The procurement of the helicopters will be the first major acquisition project under the new model.

The long-pending proposal was cleared at a meeting of the Defence Acquisition Council (DAC), chaired by Defence Minister Nirmala Sitharaman on Tuesday, sources in the Defence Ministry said.

According to the plan, 16 helicopters will be procured from the country of foreign firm while 95 will be manufactured in India.

The government also cleared procurement of nine sonar systems at a cost of Rs 450 crore that will help in detection of submarines. This will also be under the strategic partnership to give a boost to Make in India scheme to make the county self reliant for defence equipment.

The government announced the strategic partnership model that envisages the establishment of long-term strategic partnerships with qualified Indian industry majors through a transparent and competitive process.

Foreign firms will be roped in to build military platforms fostering a partnership with Indian manufacturers.

The policy will give a boost to the 'Make in India' policy in the Defence sector and set Indian industry on the path to acquiring cutting-edge capabilities which will contribute to the building of self-reliance in the vital sector of national security requirements.

The policy was proposed by the Dhirendra Singh Committee in July, 2015 stating that to expand the Make in India plan in the defence industry such a model should be adopted.

POSITIVE ENERGY

  • The government will now start the process to identify a foreign helicopter maker and an Indian defence firm for a joint venture.  
  • This was the first major acquisition project under the new model