Lok Sabha Question No. 295 (STARRED), answered on 2015-12-18
Subject: Partnership with Private Companies in Defence
Ministry: DEFENCE
Asked by: SHIVAJI ADHALRAO PATIL, KIRTI VARDHAN SINGH

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## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA

## STARRED QUESTION NO.295

TO BE ANSWERED ON THE 18 TH  DECEMBER, 2015

## PARTNERSHIP WITH PRIVATE COMPANIES IN DEFENCE

*295.  SHRI  ADHALRAO PATIL SHIVAJIRAO: SHRI KIRTI VARDHAN SINGH:

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

- (a) whether the Government proposes to enter into strategic partnerships with select domestic private sector companies in critical areas ranging from aircraft, warships, tanks, guided  missile  system,  etc.,  to  bolster  country's  defence  industrial  base  and  if  so,  the details thereof;
- (b) whether the Government has constituted a high powered committee to recommend guidelines for selecting Indian private firms for strategic partnership under the 'Make in India' programme and if so, the composition and terms of reference of the committee; and
- (c) the time by which the report is likely to be submitted?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                   (SHRI MANOHAR PARRIKAR)

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

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 295 FOR ANSWER ON 18.12.2015

The Government  constituted a Committee of Experts under the chairmanship  of  Shri  Dhirendra  Singh,  IAS  (Retd.) to evolve  a policy framework to facilitate 'Make in India', align it with the Defence Procurement Procedure and suggest requisite amendments in DPP-2013.  The Committee submitted its Report on 23.7.2015. The Committee inter-alia has recommended a  'Strategic  Partnership  (SP)'  model  for  creating  capacity  in the    private  sector  on    a  long  term  basis    for    strategic  platforms  such  as aircraft  /  helicopters,  warships  /  submarines,  armoured  vehicles,  missiles, command control systems and critical materials.

2. The Government has constituted a Task Force to lay down criteria for selection  of  the  Strategic  Partners  for  various  platforms  from  the  private sector industry on 7.9.2015.  The composition and the terms of reference are as follows:

## (a)  Composition:

- (i) Dr. V.K. Aatre, former SA to RM - Chairman.
- (ii) Shri Ishan Shankar, former  CMD, National Industrial Development Corporation & former CEO, Bharat Heavy Electricals Ltd.
- (iii) Shri N.R. Mohanty, former Chairman, HAL.
- (iv) Shri  V.P.  Shetty,  former  Chairman,  Canara  Bank,  UCO  Bank,  IDBI Bank.
- (v) Shri Shardul Shroff, Executive Chairman, Shardul Amarchand Mangaldas.
- (vi) Shri Naresh Takkar, MD & CEO, ICRA.
- (vii) Shri Kaushik Dutta, Director, Thought Arbitrage Research Institute.
- (viii) Dr. Ashish  Bhattacharyya, Prof.  &  Head,  School  of  Corporate Governance and Public Policy Institute of Corporate Affairs (Ministry of Corporate Affairs).
- (ix) Lt. General A.V. Subramanian (Retd.).
- (x) Shri Sanjay Garg, Joint Secretary (DIP), DDP - Member Secretary.

- (b)    Terms of Reference:
- (i) To  recommend  criteria  in  detail  for  the  selection  of  Strategic Partners which include the generic criteria and the specific criteria for  the  platforms  identified  by  the  Dhirendra  Singh  Committee, after studying the best practices; (ii) To prescribe the methodology for selection of the Strategic Partners by laying down  specific parameters  based  on  the  criteria of selection; (iii) To  prepare  a  draft  of  a  long  term  covenant  to  be  entered  into between  the  Government  and  the  selected  Strategic  partners  for their  respective  roles  and  responsibilities  in  the  development  and production of systems / platforms and Any other recommendation incidental to the basic aspects referred
- (iv) to the Task Force.
3. The Task Force is expected to submit its complete report by 15.1.2016.

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