‘Technology transfer key to defence tieup’
DAC likely to take up strategic partnership issue today
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.