THE LONG HAUL

The DAC approval of the SP policy is only the first step in a long process. Orders for defence hardware can be placed only after a process that could take months, if not years

Strategic partner policy approved by defence acquisition council (May 20, 2017) Clearance by cabinet committee on security (May 24, 2017) Down-selection of Indian strategic partner in two stages:

Stage 1: Selection of Indian private sector companies on financial, technical and general criteria. Contenders must have a turnover of at leat Rs 4,000 crore over three years, as well as capital assets of at least Rs 2,000 crore

Stage 2: List reduced to around six partners who can compete for the various categories Foreign original equipment manufacturer to be shortlisted based on service quality requirements, technology transfer etc Final selection based on combination of price bids and segment-specific capabilities of both companies Strategic partner and foreign OEM to come up with business plan and present a bid for a particular item of military hardware MoD receives bid from strategic partner, evaluates it and places an order