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Leg-up for private sector participation in defence equipment manufacturing
Why it is in news?
- 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 on Monday.
Defence Acquisition Council (DAC)
Defence Acquisition Council (DAC), under the Defence Minister was constituted for overall guidance of the defence procurement planning process.
The composition of the DAC is as follows:
- Defence Minister: Chairman
- Minister of State for Defence: Member
- Chief of Army Staff: Member
- Chief of Naval Staff: Member
- Chief of Air Staff: Member
- Defence Secretary: Member
- Secretary Defence Research & Development: Member
- Secretary Defence Production: Member
- Chief of Integrated Staff Committees HQ IDS: Member
- Director General (Acquisition): Member
- Dy. Chief of Integrated Defence: Staff Member Secretary
- The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought, and time frame prescribed, by optimally utilizing the allocated budgetary resources.
The functions of the DAC include:
- in-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces;
- accord of Acceptance of Necessity to acquisition proposals;
- categorization of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’;
- issues relating to Single vendor clearance;
- decision regarding ‘offset’ provisions in respect of acquisition proposals above Rs. 300 crores;
- decisions regarding Transfer of Technology under ‘Buy & Make’ category of acquisition proposals; and
- Field Trial evaluation.
SP model
- 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.
- The amplifying guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content.
- The SP model has four segments — submarines, single engine fighter aircraft, helicopters and armoured carriers/main battle tanks — which would be specifically opened up for the private sector.
- 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.
- The ambitious policy came into effect in May last year but progress was delayed due to the lack of specific guidelines.
- The DAC also approved platform specific guidelines for procurement of Naval Utility helicopters. Similar guidelines for the other categories will be issued soon.
- The Ministry stated that all procurements under the SP model would be executed by specially constituted Empowered Project Committees to “provide focused attention and ensure timely execution.”
- 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. These would be indigenously designed and manufactured.
source
The Hindu, mod.gov.in