Indian industry, which is the intended beneficiary of this preference policy, needs to play a proactive role in facilitating the smooth implementation of the order.
To achieve strategically critical self-reliance in defence production, there needs to be a greater focus on co-development, co-production projects with important partners like Israel, with an essential emphasis on exports to third countries. For the full realisation of the potential of the India–Israel defence partnership, India on its part needs to strengthen elements of its procurement processes—including the proper implementation of laid down policies.
Why the objective sought to be achieved through the strategic partnership scheme could not be attained by resorting to an existing provision in DPP 2016?
While developing critical defence technologies has undeniable benefits, their acquisition through Transfers of Technology brings numerous complexities and eventually may deliver limited benefits.
The new enabling provision in GFR-2017 provides the MoD a chance to amend its own procurement document and include a provision of production reservation and price preference for domestic industry.
It would be both graceful and fair to pay a reasonable amount that is seen as equitable compensation for infringement of the fundamental right to life or damages arising from tortious liability of the government.
The relationship between the cost versus coverage of technology transferred, which likely follows the law of diminishing returns, would make technology acquisition beyond, say 80 per cent, increasingly cost prohibitive, with no matching and assured gains
The objective of asking these question should be to elicit information that generates a well-informed debate on, and facilitates the result-oriented monitoring of, the MoD’s handling of matters related to the defence budget.
