Guidelines for implementation of SP model in def manufacturing approved

The Defence Ministry today approved key guidelines for implementation of an ambitious policy under which select private firms will be roped in to build military platforms like submarines and fighter jets in India in partnership with foreign entities.

The guidelines for carrying out various procurement projects under the Strategic Partnership (SP) model were approved by the Defence Acquisition Council (DAC), the ministry's highest decision making body, officials said.

Unveiled last year, the SP model aims to create a vibrant defence manufacturing ecosystem in the country through joint ventures between Indian corporates and global defence majors.

The officials said the government is looking at achieving a turnover of Rs 1,70,000 crore in military goods and services by 2025.

According to the guidelines, all procurements under the SP Model would be executed by specially constituted Empowered Project Committees (EPC) to provide focussed attention and ensure timely execution.

The guidelines also specified norms for carrying out various sector specific manufacturing projects.

The DAC, chaired by Defence Minister Nirmala Sitharaman, also approved platform specific guidelines for procurement of Naval Utility Helicopters, the defence ministry said.

The officials said the the "amplifying guidelines" lay emphasis on incentivisation of transfer of niche technology and ensure higher indigenous content in military platforms to be produced in India.

They said global defence majors, which are ready for collaboration with Indian partners and can help the country become a manufacturing hub for military production, will also be incentivized.

"This will give a major fillip towards encouraging self-reliance and aligning the defence sector with the 'Make in India' initiative of the Government," the defence ministry said.

It said SP model aims to revitalise 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 DAC also accorded approval for the acquisition of eight Fast Patrol Vessels (FPVs) for the Indian Coast Guard at an approximate cost of Rs 800 crore.

The ministry said the vessels will undertake day and night patrolling and policing of the Maritime zones of India.

Officials said the government is likely to unveil a major policy next month outlining a roadmap to build a robust defence production industry and make India one of the top five manufacturers of military equipment and platforms in the next 10 years.