New Delhi: Ministry of Defence has decided to make participation of companies that are outside of state control that can contribute to the manufacturing of fighter jets, submarines and armoured vehicles for Indian defence manufacturing firms.
According to officials, Larsen and Toubro Ltd, Ashok Leyland Ltd, Mahindra and Mahindra Ltd, Reliance Infrastructure Ltd, Tata Group, Punj Lloyd, Adani Group and Bharat Forge Ltd will be the major companies to participate.
Armoured vehicles will be taken care by Bharat Forge, Mahindra and Tata while superb aircraft will be handled by Tata and Reliance Infrastructure.
The ‘beast’ submarine will be managed by Larsen and Toubro.
“This was a long time in the making. Finally, the government and industry have agreed to it. It will be interesting to see how it unfolds,” said Laxman Kumar Behera, senior research fellow, Institute for Defence Studies and Analyses (IDSA).
Although, whether defence ministry has full access to it, has also a question mark to involve private firms in defence. Secondly, contractual changes handling by private firms would be difficult than that of state-owned companies.
So, balancing the private and public companies about their future and working strategies, Bahera raised the concern, “We can’t have two sets of players in the same segment. You cannot sustain two aircraft lines. It’s a clear indication that government is looking away from the PSUs. In the long term, you can have a scenario of privatisation of PSUs,”
On Saturday, defence ministry gave the go-ahead to this strategic partnership model after deliberating on it for the second time this week.
Originally, this module was presented by Dhirendra Singh Committee in July 2015 under the vision of Make In India initiative. This system would give defence broader capabilities and private firms are talented enough in utilising technologies at its best.
Last year, the then-defence minister Manohar Parrikar had announced that the policy on SP model would be unveiled soon.