Leg-up for private sector participation in defence equipment manufacturing

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Mains Paper 3: Science & Technology | Indigenization of technology & developing new technology

From UPSC perspective, the following things are important:

Prelims level: Particulars of the SPG

Mains level: Indigenization of defence manufacturing


News

Implementing Strategic Partnership guidelines

  1. In a major step towards boosting private sector participation in domestic defence manufacturing, the Defence Acquisition Council (DAC) approved the implementation of Strategic Partnership guidelines.
  2. SP 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.
  3. The guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content.
  4. All procurements under the SP model would be executed by specially constituted Empowered Project Committees to provide focused attention and ensure timely execution.

Four segments of Policy

  1. The SP model has four segments viz. submarines, single-engine fighter aircraft, helicopters and armoured carriers/main battle tanks which would be specifically opened up for the private sector.
  2. 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.

Other developments

  1. The DAC also approved platform-specific guidelines for procurement of Naval Utility helicopters
  2. In another decision, the DAC gave approval for the acquisition of eight Fast Patrol Vessels (FPV) for the Coast Guard at an approximate cost of ₹800 crore
  3. These would be indigenously designed and manufactured.
Defence Sector – DPP, Missions, Schemes, Security Forces, etc.
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