Implementation of ‘Make in India’ defence policy cleared

And the first project to kick off the long-delayed Strategic Partnership policy will be 111 utility twin-engine helicopters worth an estimated Rs 21,000 crore for the Indian Navy.

The decision to implement the policy was taken at a meeting of the Defence Acquisition Council - the highest decision-making body on procurement. Defence Minister Nirmala Sitharaman led the meeting. 

“In continuation of its efforts to boost indigenous defence industry and to reduce timelines so as to ensure timely delivery of equipment to the Armed Forces, the DAC discussed and approved implementation guidelines for the Strategic Partnership Model,” a defence ministry spokesperson said. 

The model promulgated in May 2017 seeks to identify Indian private firms to be designated as Strategic Partners. Apart from allowing private manufacturers, it also keeps the door open for defence PSUs and the Ordnance Factory Board to tie up with foreign original equipment manufacturers to make big-ticket military hardware. 

In the initial phase, the selection of such partners would be confined to four segments: Fighter aircraft, helicopters, submarines, armoured fighting vehicles and main battle tanks. In each segment, only one partner would generally be selected, according to the policy. 

The model aims to revitalise the defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon systems for the future needs of the Armed Forces. 

“The amplifying guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content.

“Global majors, who in collaboration with Indian partners are ready to make India a regional and global manufacturing hub for the platform will also be incentivised.” 

The spokesperson said the move would give a “major fillip towards encouraging self-reliance and aligning the defence sector with the ‘Make in India’ initiative of Prime Minister Narendra Modi.