Defence Ministry sets up task force to select Indian private companies for mega projects
These projects include aircraft, warships, armoured fighting vehicles complex missile systems, command and control networks and critical materials.
By Manu Pubby, ET Bureau | Updated:
NEW DELHI: The defence ministry has set up a high powered task force to select Indian private companies for mega ‘Make in India’ defence manufacturing projects, accelerating its process of reforming complex procurement rules.
The task force, to be led by former DRDO Chief VK Aatre, has been mandated to set a selection criteria for ‘strategic partners’ — private companies that will be given key defence projects like aircraft manufacturing, warship production and complex weapons systems under the Make in India initiative.
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Aatre, who succeeded APJ Abdul Kalam as DRDO chief in 2000, told ET that the first meeting of the task force would take place within two weeks and details including a time line would be discussed.
“Things will be clearer after the first meeting of the task force takes place by the end of this month.” Sources said the task force, which will include representatives from the industry, armed forces, defence ministry, banking sector, credit rating agency, specialized consultancy and public sector units, is expected to submit detailed criteria at the earliest for incorporation into the new defence procurement policy being planned by the ministry.
The criteria to qualify as strategic partners is likely to be critical to the future of major private players venturing into defence manufacturing. As per the proposals of the Dhirendra Singh panel on reforms, strategic partners will be identified for six major types of projects that encompass all major contracts.
Only one or two players are to be selected for the six types of projects, restricting total number of private companies for mega projects to about a dozen. These projects include aircraft, warships, armoured fighting vehicles complex missile systems, command and control networks and critical materials.
The task force, to be led by former DRDO Chief VK Aatre, has been mandated to set a selection criteria for ‘strategic partners’ — private companies that will be given key defence projects like aircraft manufacturing, warship production and complex weapons systems under the Make in India initiative.
Follow @ETDefence Twitter handle for comprehensive coverage on other buzzing Defence stories
Aatre, who succeeded APJ Abdul Kalam as DRDO chief in 2000, told ET that the first meeting of the task force would take place within two weeks and details including a time line would be discussed.
“Things will be clearer after the first meeting of the task force takes place by the end of this month.” Sources said the task force, which will include representatives from the industry, armed forces, defence ministry, banking sector, credit rating agency, specialized consultancy and public sector units, is expected to submit detailed criteria at the earliest for incorporation into the new defence procurement policy being planned by the ministry.
The criteria to qualify as strategic partners is likely to be critical to the future of major private players venturing into defence manufacturing. As per the proposals of the Dhirendra Singh panel on reforms, strategic partners will be identified for six major types of projects that encompass all major contracts.
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Only one or two players are to be selected for the six types of projects, restricting total number of private companies for mega projects to about a dozen. These projects include aircraft, warships, armoured fighting vehicles complex missile systems, command and control networks and critical materials.
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India's defence preparedness has received several boosts in the last few months, with new missile systems being inducted and successfully test fired. Adding to that, India is set to buy Rafale jets and has already received upgraded Mirage aircraft from France.
From stealth destroyers to submarines, we take a look at eight significant developments in India's defence, that have added to the country's fire power and combat capabilities:
India's defence preparedness has received several boosts in the last few months, with new missile systems being inducted and successfully test fired. Adding to that, India is set to buy Rafale jets and has already received upgraded Mirage aircraft from France.
From stealth destroyers to submarines, we take a look at eight significant developments in India's defence, that have added to the country's fire power and combat capabilities:
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