Plan for military hardware okayed

Continued from Page 1 more global original equipment manufacturers (OEMs) will be identified for each segment. This will happen concurrently. “Even if one OEM is shortlisted, the process will be taken forward”, the document says.

As of now, the policy is expected to be implemented in three segments — fighter aircraft, submarines and armoured vehicles. However, the defence ministry may “add more segments or subdivide the existing ones as the model matures”.

Finally, only one strategic partner will be selected per segment to maintain focus on core areas. While selecting the strategic partner, aspects like “willful default, debt restructuring and non-performing assets”, besides the technical and financial requisites, will be considered.

In the final run, the selection will be based on a combination of price bids and segment-specific capabilities of the companies, says the document prepared after extensive stakeholder consultations with the Indian industry.

On the other hand, the degree of willingness of an OEM to conduct Transfer of Technology (ToT) to its Indian partner will be the main criterion in deciding whether the foreign company can qualify to partner an Indian company to manufacture military equipment.

In evaluating ToT, 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 strategic partnership in establishing systems for integration of platforms, plans to train skilled manpower, and extent of future research and development planned in India”, the presentation said.