· The Defence Ministry is shortly expected to release project-specific implementation guidelines for the 111 naval utility helicopters to be procured under the Strategic Partnership (SP) model.
· However, foreign companies say there is still some clarity required on crucial legal, liability and technology transfer issues.
· There are two important issues that need clarity.
· One is legal. Global regulations do not allow to sell a submarine or fighter jet to a private company.
· For the first time, under the SP model, Indian private companies will get to tie up with global original equipment manufacturers (OEMs) and build major defence platforms in India under technology transfer. So far, it was defence public sector undertakings (DPSUs) which played the lead role.
· The other issue, was about the liability of the end product which was one of the major reasons the earlier medium multi-role combat aircraft (MMRCA) deal for 126 jets got derailed at the contract negotiation stage, after Dassault Aviation refused to stand guarantee to the aircraft manufactured by Hindustan Aeronautics Ltd. (HAL).
· There is large infrastructure already present in the country with DPSUs and this must be utilised for the benefit of both the country as well as form a business sense.
· In July-end, the Defence Acquisition Council (DAC) cleared the general as well as project-specific implementation guidelines for the naval helicopters that would lay emphasis on transfer of technology and high absorption of indigenous content.
· The guidelines and the qualification guidelines are yet to be communicated to the industry.
· All procurements under the SP model would be executed by specially constituted empowered project committees (EPC) to ensure timely execution.
· Apart from the helicopters, the projects to be processed under the SP model are fighter aircraft, P-75I submarines and armoured vehicles.
Source : The Hindu