Article Posted on : - Jan 22, 2016

A file photo.

NEW DELHI (PTI): A high-level task force, headed by former DRDO chief V K Aatre, has recommended to the Defence Ministry ten critical segments where it can go for strategic partnerships.

In a move that may rile private companies, the task force has recommended that one company cannot be eligible for multiple partnerships. This means that, each company would be restricted to just one critical segment in the overall multi-billion dollar defence manufacturing sector.

The task force, which has submitted its report to the Defence Ministry, has divided the sectors eligible for strategic partnerships into two groups.

Segments in Group 1 are - aircraft, helicopters, aero- engines, submarines, warships, guns (including artillery guns) and armoured vehicles including tanks.

In Group 2, the segments are - metallic material and alloys, non-metallic material (including composites and polymers) and ammunition including smart ammunition.

However, it has recommended that in the initial phase, aircraft, helicopters, submarines, armoured vehicles and ammunition be considered for strategic partnerships.

"Only one company shall be eligible as the Applicant Company from one group in respect of Group 1 segments. Such applicant company shall be permitted to file an application for selection as a Strategic Partner in respect of Group 1 segments," the report said.

It has recommended a series of criteria for the ranking of the companies.

"Upon application of the applicant companies, the highest ranked applicant company shall be selected by the MoD and allotted the status of strategic partner of the segment. In event the same applicant company is ranked highest in more than one segment, the preference list as submitted by the applicant company at the time of application shall be followed.

"Therefore, such an applicant company shall be appointed the strategic partner for the segment which is listed higher in its preference list prioritising it preference to segments in rank. For other segments where it is highest ranked but has not been selected, in view of the preference list the next ranked applicant company shall be appointed the strategic partner," the report said.