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

Border brawl: China choppers were in air

Indian Air Force's Sukhoi 30 fighter aircraft  (File picture) Two helicopters of the Chinese People’s Liberation Army hovered close to the Line of Actual Control in eastern Ladakh on May 5 and Indian Air Force fighter jets had also been airborne at the same time during a face-off between soldiers near the Pangong lake, sources in the army headquarters said on Tuesday. The latest revelations come at a time there has been an escalation in tension in pockets of the disputed frontier. “The Indian Air Force is regularly carrying out sorties of its Sukhoi 30 fighter aircraft in the Ladakh sector amid the simmering tension with China in the region. During the face-off last week, two Chinese choppers had come close to the border but there was no air space violation. The IAF’s Sukhoi 30 fighter jets were also airborne at the same time but it was routine flying and not in response to Chinese helicopters,” a source said. Chinese PLA Choppers Spotted Near LAC; IAF Rushes Fighter Jets To Ladakh...
Post a Comment
Read more

Indian Army looking for new armoured vehicles for Ladakh, Tata among contenders

Humvee and American Stryker Infantry Combat Vehicle are the two others who are also being considered by the Indian Army to deliver such vehicles. Photo of a Tata Defence Combat Light Armored Multi Role Vehicle Seeking to provide highly mobile armoured protection vehicles to its soldiers in high altitude terrains like Eastern Ladakh, the Indian Army is looking to choose from three different vehicles including the indigenous Tata Wheeled Armoured Protection along with American Stryker Infantry Combat Vehicle and Humvee. The Indian Army has a need for armoured infantry combat vehicles for quick movement of troops in the Eastern Ladakh area where the Chinese have deployed their armoured personnel carriers in large numbers. The force is looking at the three options which include the Tata WhAP and the American Stryker and Humvee, defence sources told ANI. The options are being evaluated by the force at the moment and a decision in this regard would be taken soon, they said. Sources said duri...
Post a Comment
Read more

‘Disengagement an intricate process, needs constant verification’: Army

The government’s high-powered China Study Group (CSG) on Wednesday reviewed the latest developments in eastern Ladakh, with focus on the next stage of disengagement between the Indian and Chinese armies following the 14-hour meeting between senior military commanders.   The focus of the current round of military talks is to hammer out a consensus on easing tensions between the two armies in the Finger Area and Depsang plains as well as pulling back weapons and equipment from friction points in other sectors.(PTI) India and China remain committed to “complete disengagement” which is an “intricate process” and “requires constant verification”, the Indian Army said in a statement on Thursday, two days after senior military commanders from both sides met at Chushul to discuss the road map for reducing tensions along the contested Line of Actual Control (LAC). “The senior commanders reviewed the progress on implementation of the first phase of disengagement and discussed further step...
Post a Comment
Read more