MoD holds talks with India Inc on defence partnership

New Delhi: A crucial meeting led by defence minister Arun Jaitley and attended by his key ministerial aides, the defence ministry made a presentation to top industry representatives of the Chambers of Commerce and Industry on the proposed strategic partnerships as part of consultations to finalise the long-awaited model. The meeting lasted for about one and a half hours.

“The ministry is working towards institutionalising a transparent, objective and functional mechanism to encourage broader participation of the private sector in defence manufacturing under the ‘Make in India’ framework,” a defence ministry statement said.

“The proposed strategic partner model is intended 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, trigger innovation and enable participation in global value chains as well as promote exports. This would gradually ensure greater self-reliance and dependability of supplies essential to meet national security objectives.”

Now the next development is expected in a Defence Acquisition Council meet, which is likely to be convened on May 15. After that the policy will have to be vetted by the finance ministry as it would involve financial obligations before being okayed by the Cabinet.