Technology to be sought through tie-ups with OEMs.

Macro, small and medium enterprises (MSMEs) will be engaged with industry heavyweights in the tech-savvy manufacturing process to produce “Make in India” fighter aircraft, submarines and armoured vehicles.

This process was adopted by the Defence Acquisition Council which has finalized broad contours of policy to engage Indian private sector in manufacture of high-tech defence equipment in India.

The council finalized the policy on 20 May 2017 under the chairmanship of Defence Minster Arun Jaitley.

The policy is aimed at developing the defence industrial eco-system in the country through the involvement of both the major Indian corporates as well as the MSME sector.

The policy, which was developed through extensive stakeholder consultations with Indian industry, envisages the establishment of long-term strategic partnerships with qualified Indian industry majors through a transparent and competitive process wherein the Indian industry partners would tie up with global Original Equipment Manufacturers (OEMs) to seek technology transfers and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains.

The policy will give a boost to the ‘Make in India’ initiative 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 of national security requirements.

The policy is expected to be implemented in a few selected segments to begin with, namely, fighter aircraft, submarines and armoured vehicles, said a government press note.

In future, additional segments may be added.

Appropriate institutional mechanisms will be set in place to implement the policy. fii-news.com