DAC to meet again on Strategic Partnership model

New Delhi, May 17:  The Defence Acquisition Council (DAC), the top decision making body on defence procurement, is expected to meet again this week to hold further discussions on the Strategic Partnership model for involving private players in defence manufacturing, sources said.

The DAC had met on Monday and discussed the issue. Sources said the discussions were positive, but more meetings were needed before a final shape can be given.

According to sources, another meeting could be held on Saturday to discuss the model.

However, it may be a while before the chapter is finally approved, sources indicated.

Defence Minister Arun Jaitley on May 11 held a meeting with representatives from the industry over the proposed Strategic Partnership model.

According to sources, unlike the recommendations of the committee under former DRDO chief V.K. Atre, the Defence Ministry may not unilaterally nominate a Strategic Partner in the identified segments but a two-stage selection process will be put in place.

Under this process, a pool of six Indian companies will be created, and based on competition one of them will be selected as the Strategic Partner. 

The private industry will also have a tie-up with an international original equipment manufacturer for these.

One company can only be the strategic partner for one segment.

According to sources, the partnership model will be kick-started in four sectors - single-engine fighter aircraft, helicopters, submarines and armoured vehicles and main battle tanks.