The Ministry of Defence (MoD) is shortly expected to release project-specific implementation guidelines for the 111 Naval Utility Helicopters to be procured under the Strategic Partnership (SP) model. However, foreign companies say there is still some clarity required on crucial legal, liability and technology transfer issues.
“There are two important issues that need clarity. One is legal. We can’t sell a submarine or fighter jet to a private company. Global regulations do not allow that. It has to be to a government owned company. So, there has to be a government to government component in the end,” a top executive of a foreign company said.
For the first time, under the SP model, Indian private companies will get to tie up with global Original Equipment Manufacturers (OEM) and build major defence platforms in India under technology transfer. So far, it was Defence Public Sector Undertakings (DPSU) which played the lead role.
The other issue, he stated was issue of liability of the end product. “For us to stand guarantee to the finished product built by a local company is a problem. There has to be a backend mechanism to enable us,” he noted.
26/08/18 Dinakar Peri/The Hindu
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“There are two important issues that need clarity. One is legal. We can’t sell a submarine or fighter jet to a private company. Global regulations do not allow that. It has to be to a government owned company. So, there has to be a government to government component in the end,” a top executive of a foreign company said.
For the first time, under the SP model, Indian private companies will get to tie up with global Original Equipment Manufacturers (OEM) and build major defence platforms in India under technology transfer. So far, it was Defence Public Sector Undertakings (DPSU) which played the lead role.
The other issue, he stated was issue of liability of the end product. “For us to stand guarantee to the finished product built by a local company is a problem. There has to be a backend mechanism to enable us,” he noted.
26/08/18 Dinakar Peri/The Hindu
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