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Ministry of Defense allows private sector to cooperate with Indian Defense Support Units – India India News


The Department of Defense has decided to make changes to the Defense Acquisition Procedures (DAP) Manual. This will give an opportunity for the private sector to cooperate with the Indian defense PSUS with a majority stake. It will also allow it to manufacture the necessary weapons systems. This will give a boost to “self-reliant India” in the military equipment sector.

According to South Block officials, this cooperation will be tested in the development and manufacture of the Indian Multi-Role Helicopter (IMRH), which will replace all Russian-made Mi-17 and Mi-8 helicopters introduced into the Indian Army. IMRH will weigh 13 tons. It will accompany the Indian Armed Forces in air strike, anti-submarine, ship, military transport and VIP roles.

Enthusiasm about it in private companies
Indian private sector companies have already shown their eagerness to participate in the project and the Ministry of Defense has asked them to start manufacturing in the next seven years. France’s Safran signed a Memorandum of Understanding (MoU) with Indian HAL on 8 July 2022 to form a new joint venture to develop, produce and support IMRH engines including marine variants.

It will also allow 25% of producers to export
According to officials, private sector companies will also be allowed to export 25 percent of their production to third countries and increase the country’s foreign exchange. The Indian armed forces have been asked to buy the upgraded IMRH which is due to be implemented in the next seven years. Private sector companies have also sought assurances from the Ministry of Defense that the Indian armed forces should purchase the helicopter if the product is manufactured within the next five years.

There was no other choice with the center!
It was decided to allow the private sector to acquire a 51 per cent stake and form joint units with the Indian PSUs as the PSUs were not able to deliver on time, which resulted in increased cost. Because of this delay, the Modi government had no choice but to purchase the required machinery from other countries through tender or government-to-government route.

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