DAC approves implementation of Strategic Partnership guidelines

Science Affairs Defence

Defence Acquisition Council (DAC) has approved implementation of Strategic Partnership guidelines.
It is considered as major step towards boosting private sector participation in domestic defence manufacturing.
The policy had come into effect in but progress was delayed due to lack of specific guidelines.

Strategic Partnership Guidelines

Strategic Partnership model aims to revitalise defence industrial ecosystem and progressively build indigenous capabilities in the private sector to design, develop and manufacture complex weapon system for future needs of armed forces.
The amplifying guidelines lay emphasis on incentivisation of transfer of niche technology and higher indigenous content.
Strategic Partnership model has four segments — submarines, single engine fighter aircraft, helicopters and armoured carriers/main battle tanks — which would be specifically opened up for the private sector.
Under this policy, one Indian private company would be selected in each of the four segments which would tie-up with shortlisted local Original Equipment Manufacturers (OEM) to manufacture the platforms in India under technology transfer.

About DAC:

The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought and time frame prescribed by optimally utilizing the allocated budgetary resources.
The functions of the DAC include (i) in principle approval of 15 Years Long Terms Integrated Perspective Plan for Defence Forces (ii)accord of Acceptance of Necessity to acquisition proposals; (iii) categorization of the acquisition proposals relating to 'Buy', 'Buy & Make' and 'Make'; (iv) issues relating to Single vendor clearance; (v) decision regarding 'offset' provisions in respect of acquisition proposals above Rs. 300 crores; (iv) decisions regarding Transfer of Technology under 'Buy & Make' category of acquisition proposals; and (vii) Field Trial evaluation.

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