(MENAFN- KNN India) Defence ministry finalises policy to develop defence industrial ecosystem in the country
New Delhi, May 22 (KNN) The top decision-making body on defence procurement, Defence Acquisition Council (DAC), has cleared the Strategic Partnership model making the rules more clear for private firms role in defence manufacturing.
Chaired by defence minister Arun Jaitley, DAC on Saturday cleared the broad contours of a policy aimed at engaging the Indian private sector in the manufacture of high-tech defence equipment in India.
However, the finer details are yet to be worked out before the SP model goes to the Cabinet Committee on Security (CCS) for final approval.
There have been several rounds of meetings between the ministry of defence (MoD) and private sector representatives over the private sector role in defence manufacturing.
The policy is aimed at engaging the Indian private sector in the manufacturing of high-tech defence equipment in India.
The policy is aimed at developing the defence industrial ecosystem in the country through the involvement of both the major Indian corporate as well as the MSME sector, the statement added.
'The policy will give a boost to the 'Make in India' policy in the defence sector and set Indian industry on the path to acquiring cutting-edge capabilities which will contribute to the building of self-reliance in the vital sector,' the ministry had said.
The SP policy was to be part of the amended Defence Procurement Procedure-2016 (DPP), but has not been finalised till now. As per an estimate, defence projects worth more than USD 35 billion hinge on the SP model.
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