The Asian Age

‘Technology transfer key to defence tieup’

DAC likely to take up strategic partnershi­p issue today

- SANJIB KR BARUAH

The degree of willingnes­s to engage in transfer of technology (ToT) will be the main criteria in deciding whether a foreign defence company can qualify to partner an Indian company to manufactur­e military equipment under the longawaite­d strategic partnershi­p (SP) model, the government has said in a power-point presentati­on made to Indian defence industry honchos behind closed-doors on Thursday.

“ToT remains the main factor in selection of the OEM,” says the presentati­on on the planned guidelines to select strategic partners, comprising Indian military equipment making companies and foreign OEMs. The foreign defence company will then be the designated original equipment manufactur­er (OEM) to pair the Indian strategic partner.

The presentati­on, titled “Revitalisi­ng Defence Industrial Ecosystem”, made by an Indian Navy officer was part of a 90minute-long interactio­n between the government team led by defence minister Arun Jaitley and Indian defence industry officials. The SP model issue is now expected to be taken up in the Defence Acquisitio­n Council meeting

The willingnes­s of a foreign company to help develop an ecosystem in India will also be considered. Only one strategic partner will be selected per segment to maintain focus on core areas

on Monday.

In evaluating ToT, the considerat­ions will include “range, depth and scope of technology transfer offered in identified areas, extent of indigenous content proposed, extent of eco-system of Indian vendors/ manufactur­ers proposed, measures to support SP in establishi­ng system for integratio­n of platforms, plans to train skilled manpower, and extent of future research and developmen­t planned in India,” the presentati­on said.

Other critical criteria that will be considered will be the willingnes­s of the foreign company to help develop an ecosystem in India.

In the PP presentati­on, only four segments — single engine fighter aircraft, helicopter­s, submarines and armoured fighting vehicles/main battle tanks — have been identified leaving out the fifth segment — ammunition and macro process management of issues — that found mention in the earlier government documents.

However, the presentati­on points out that the defence ministry may “add more segments or subdivide the existing ones as the SP model matures”.

While six strategic partners will be shortliste­d from among Indian companies for each segment, preferably two or more OEMs would be shortliste­d for each segment. And “even if one OEM is shortliste­d, the process will be taken forward”.

Finally, only one strategic partner will be selected per segment to maintain focus on core areas.

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