Government to issue policy on Strategic Partnership model: Bhamre

New Delhi, May 23 (IANS) Minister of State for Defence Subhash Bhamre on Tuesday said the government will soon issue a policy on the Strategic Partnership model for pushing private sector involvement in defence manufacturing.

"The Government of India has been working on formulating a 'Strategic Partnership' model for creating capacity in the private industry on a long term basis," he said.

The Government had constituted a task force with experts from various fields to recommend criteria and prescribe methodology for selection of Strategic Partners. The report submitted by the task force has been examined at length and Government shall be issuing the policy for selection of strategic partners shortly," the Minister said addressing a seminar on Make in India organised by Indian Air Force and industrial chamber CII.

The Defence Ministry on Saturday finalised the Strategic Partnership model, to engage the Indian private sector in the manufacture of high-tech defence equipment in India. The policy will now go to the Cabinet Committee on Security for final clearance.

Bhamre also said the exchange rate variation protection has been made applicable for the Indian private sector at par with public sector undertakings for all categories of capital acquisitions.

"The preferential treatment given to DPSUs in excise and custom duty has been discontinued, as per the revised policy; all Indian industries (public and private) are subject to the same kind of exercise and custom duty levies. This would ensure a level playing field between the private and public sector. Another step that the government has taken is to remove the custom duty exemption on import of defence equipment to encourage 'Make in India'," Bhamre said.

Speaking at the event, IAF Chief Air Chief Marshal B.S. Dhanoa said a high degree of indigenisation has been achieved in the field of radars and all the radars planned for induction in future are from Indian firms.

"The IAF is completely self-reliant in the field of software applications and a number of projects are functioning successfully on software developed by Indian firms," Dhanoa said.