Lok Sabha Question No. 110 (STARRED), answered on 2018-07-25
Subject: Strategic Partnership Model
Ministry: DEFENCE
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## STARRED QUESTION NO.110

TO BE ANSWERED ON THE 25 TH  JULY, 2018

## STRATEGIC PARTNERSHIP MODEL

## *110.  KUMARI SHOBHA KARANDLAJE:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether Dhirendra Singh Committee had recommended  in  2015  that the Government should adopt a strategic partnership model, whereby a private firm may be chosen for the development of a specific identified platform and if so, the details thereof;
- (b) whether the  Government proposes to  forge  joint venture of  Defence PSUs  with foreign companies under its ambitious strategic partnership model and if so, the details thereof;
- (c) whether the Government has created a level-playing field for all the stakeholders to build key military platforms like submarines and fighter jets in the country and if so, the details thereof;
- (d) whether  the  Government has  envisaged  clear  role  for  major  Defence  PSUs  like HAL, Mazagon Dock Shipbuilders Limited and BRML which are leading producers of key military platforms and if so, the details thereof; and
- (e) the concrete steps taken / being taken for indigenisation of defence manufacturing?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SMT. NIRMALA SITHARAMAN)

j{kk ea=h

¼Jherh  fueZyk lhrkje.k )

(a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK SABHA STARRED QUESTION NO. 110 FOR ANSWER ON 25.07.2018

(a) to (e): A  Committee  of  Experts  headed  by  Shri  Dhirendra  Singh constituted by the Ministry had made recommendations to the Government on 'Strategic Partnership Model' for creating capacity in the private sector on  a  long-term  basis.    Based  on  these  recommendations,  the  VK  Aatre Task Force was constituted to lay down criteria for selection of Strategic Partners  for  various  platforms  from  the  Private  sector.    Government finalised  the  policy  on  Strategic  Partnerships  in  Defence  Sector  and promulgated the same on 31.05.2017 as Chapter VII of Defence Procurement  Procedure  (DPP)  2016  as  'Revitalising  defence  Industrial ecosystem  through  Strategic  Partnerships'.    The  Policy  is  intended  to encourage broader participation of the private sector, in addition to DPSUs /  OFB,  in  manufacture  of  defence  platforms  and  equipment.    In  order  to enhance indigenous defence manufacturing capabilities, Ministry of Defence may consider the role of DPSUs / OFB at the appropriate stage(s) keeping in view the order book position, capacity & price competitiveness. The following 04 segments have been identified for acquisition under the SP  route:  (i)  Fighter  Aircraft;  (ii)  Helicopters;  (iii)  Submarines;  and  (iv) Armoured Fighting Vehicles (AFVs) / Main Battle Tanks (MBTs).  The Policy will  serve  to  enhance  competition,  increase  efficiencies,  facilitate  faster and  more  significant  absorption  of  technology,  create  a  tiered  industrial ecosystem, ensure development of a wider skill base and trigger innovation, leading to reduction in dependence on imports and greater selfreliance in meeting national security objectives.

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