An Assessment of the Strategic Partnership Model in Defence Industry
The SP model, if implemented well, is likely to have a number of benefits for both the private sector and the larger Indian defence industry.
- Laxman Kumar Behera
- June 02, 2017
The SP model, if implemented well, is likely to have a number of benefits for both the private sector and the larger Indian defence industry.
The new enabling provision in GFR-2017 provides the MoD a chance to amend its own procurement document and include a provision of production reservation and price preference for domestic industry.
It would be both graceful and fair to pay a reasonable amount that is seen as equitable compensation for infringement of the fundamental right to life or damages arising from tortious liability of the government.
The relationship between the cost versus coverage of technology transferred, which likely follows the law of diminishing returns, would make technology acquisition beyond, say 80 per cent, increasingly cost prohibitive, with no matching and assured gains
From all angles – political, economic, diplomatic and military – India is in a position to meet the SLAF’s potential combat aircraft requirements.
The objective of asking these question should be to elicit information that generates a well-informed debate on, and facilitates the result-oriented monitoring of, the MoD’s handling of matters related to the defence budget.
The biggest lesson that India can borrow is France’s integrated and centralised procurement structure, which has the dual responsibility of arms acquisition and defence industrial development.
The United States, once the dominant influence over the armed forces of the region, is now in danger of losing that position to China and has already lost it in countries like Bolivia and Venezuela.
If a product is indigenously designed, developed and manufactured, should the percentage of indigenous content in that product really matter so much?
The Task Force has not extended the principle of Strategic Partnership to the whole gamut of big contracts in which the private sector is supposed to play a major role. And it visualises strategic partners as poor cousins of state-owned entities.