The Defence Ministry will prioritise high value contracts – ammunition for the Army, submarines for the Navy and aircraft for the air force – under the strategic partnership model that will select private companies for long term manufacturing projects, minister Manohar Parrikar has said.
The minister announced that the new defence procurement policy has been finalised after a high level meeting on Monday but said that details of the strategic partner (SP) model will be firmed up later, as reported by ET.
Parrikar said that conventional submarine acquisition plan – named P75 I – will be taken under the new model that selects one Indian vendor for a particular sector of manufacturing like warships or aircraft. The minister said that ‘one or two’ projects under the model could be rewarded by the end of this year.
He also named ‘a fighter, a helicopter’ as one of the first to be considered. Another area for the SP will be ammunition for the Army with Parrikar saying that a firm 10 year order would be given to the selected company.
As reported, the model has been under discussion for the last three months but has met resistance within the ministry and is likely to take more time before being finalised and sent for cabinet approval.
Parrikar also said that a new blacklisting policy will be announced in April which will include a mechanism for companies on the negative list to appeal for removal. The minister said that a special board will be set up that will look at all blacklisted cases and review them depending on the investigation stage as well as their ‘crime’.
The blacklisting policy will be a separate document from the procurement policy that is likely to be made public on March 28, the opening day of the MoD’s defence expo in Goa.
Source:- Economic Times