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Strategic Partnerships in Defence Acquisition

SPs to enhance competition in the industry

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The policy on Strategic Partnerships (SPs) in Defence sector intends to institutionalise a transparent, objective and functional mechanism to encourage broader participation of the private sector.

It will serve 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 and trigger innovation, leading to reduction in dependence on imports and greater self-reliance in meeting national security objectives.

The following four segments have been identified for acquisition under Strategic Partnership (SP) route:
Fighter Aircraft;
Armoured Fighting Vehicles (AFVs)/Main Battle Tanks (MBTs).

The Strategic Partnership Model (SPM) is a different category of Capital Acquisition in addition to the existing categories as mentioned in Chapter-I of DPP-2016 i.e. ‘Buy (Indian-IDDM)’; ‘Buy (Indian)’; ‘Buy & Make (Indian)’; ‘Buy & Make’ and ‘Buy (Global)’.

The chapter is on Ministry of Defence website:

The amount of investment and employment opportunities likely to be created cannot be quantified at this stage as the cases in the respective segments are at their initial/early stages, said Minister of State for Defence Dr. Subhash Bhamre on 12 March 2018.

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