Skip to main content

Strategic Partnership Model for Military Manufacturing Meets Resistance Within Defence Ministry.



NEW DELHI: The report by a key panel to select private sector players that will be accorded special 'strategic partner' status for major military manufacturing projects has met resistance within the defence ministry, with various departments and services raising concerns that process recommended may lead to monopolisation and needs more consultation.
Sources have told ET that a high-level meeting on the Atre Committee report - which has identified five priority areas for Make in India in the defence sector - recently took place in South Block, headed by Defence Secretary G Mohan Kumar where the proposed model faced resistance. While the larger concept of the strategic partnership (SP) model to identify and encourage private sector players for manufacturing in defence was agreed to, the details of the report - including the suggestion that only one company be selected for a particular segment like warship production or submarine construction - has not found full favour within the ministry.
Officials told ET the defence ministry's finance department raised concerns the model could lead to monopolisation. It may be noted that one of the suggestions of the Atre panel was to exclude defence manufacturing from the Competition Act, 2002. The Navy is believed to have batted for the selection of more than one private company per segment. The Air Force is said to have suggested more consultation on the model, with an industry view point being brought in. 
Several more rounds of meetings are expected given the objections raised and it is now unlikely that it would be announced with the upcoming changes in the defence procurement procedure (DPP). 
The ministry is expected to announce the DPP 2016 close to the upcoming DefExpo in Goa but sources told ET the SP model would not be elaborated at this stage as it would need cabinet approval as well as constitutional amendments.

 Reference : http://www.indiandefensenews.in

Comments

Post a Comment

Popular posts from this blog

Explained: What is Army Aviation Corps, the youngest Corps of the Indian Army

A look at the Army Aviation Corps’ history and its relevance in modern day battlefields, including in Counter Insurgency and Counter Terrorism (CI-CT) operations. Representative Image The Army Aviation Corps (AAC), the youngest Corps of the Indian Army, celebrated its 35th Corps Day on November 1. We take a look at the arm that adds an air dimension to the Army’s capabilities, its history, and its relevance in modern day battlefields, including Counter Insurgency and Counter Terrorism (CI-CT) operations. The roots of Army Aviation Corps The origin of the AAC can be traced back to the raising of the Army Aviation wing of the Royal Air Force in India in 1942, and the subsequent formation of the first Indian Air Observation Post in August 1947. The Air Observation Post units primarily acted as artillery spotters – which are the elements that help the artillery in directing the fire and also giving air support to ground forces. In the wars of 1965 and 1971, the Air Observation Post helicop...
Post a Comment
Read more

That time when India took half of Pakistan to make it pay for a motorcycle

In 1947, British officer Yahya Khan offered his colleague 1,000 rupees for his spiffy red motorcycle. His colleague, Sam Manekshaw, agreed. But before Khan could pay, he was off to what was going to become Pakistan. The British split its Indian colony, and things on the subcontinent have been pretty tense ever since. To top it all off, Yahya Khan didn't pay for the motorbike. But he would, even if it took almost 25 years. The Partition of India was much more than the splitting of the British Raj into two independent states. It was a catastrophic split that tore apart the country and created millions of refugees, cost millions of lives, and split the armed forces of the country in two, all based on religion. Violence erupted almost immediately between the two groups on such a large scale that much of it has never been forgotten or forgiven. Animosity continued between both sides for decades, and the two have fought war after war because of the myriad issues left unaddressed. By 1970...
Post a Comment
Read more

Explained: India-US defence deals - BECA, LEMOA & COMCASA

At 2+2 meeting next week, the two countries will look to push intelligence sharing pact BECA . With key deals LEMOA and COMCASA already signed, what does it mean for defence, particularly in light of LAC standoff? India and US have signed the LEMOA in 2016, COMCASA in 2018 and BECA is scheduled for the third 2+2 ministerial meeting (on November 3rd) India and the US are preparing for the third 2+2 ministerial meeting between External Affairs Minister S Jaishankar and Defence Minister Rajnath Singh , and US Secretary of State Michael Pompeo and Defense Secretary Mark T Esper in New Delhi on October 26-27. Deputy Secretary of State Stephen E Biegun visited India last week to lay the groundwork for the high-level visits 2+2 in 2018. One of the items on the agenda will be the Basic Exchange and Cooperation Agreement (BECA) — a pact with deep military implications. In the last two meetings, agreements known as LEMOA and COMCASA were signed; now, with BECA, these have been dubbed the ...
Post a Comment
Read more