Indian defence industry exports watch

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Press Information Bureau
Government of India
Ministry of Defence
21-March-2017 14:31 IST

Defence Export Policy
All exports including defence exports are covered under the Export and Import (EXIM) Policy issued by Directorate General of Foreign Trade (DGFT). However, Ministry of Defence has formulated a separate Defence Export Strategy to give fillip to defence exports. The strategy includes creation of an Export Promotion Body, engaging Indian Missions / Embassies abroad in export promotion, export financing through Line of Credit etc., better use of Offset policy, export of indigenously developed defence systems and streamlining of the export regulation processes. The Defence Export Strategy has also been put in the public domain and is available at the website of Ministry of Defence (www.ddpmod.gov.in).

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to PROF. M. V. Rajeev Gowdain Rajya Sabha today.
NAMPI/ Ranjan
Release ID: 159601
 

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Defence Exports
A. Export Regulation
  1. As per DGFT Notification No. 115 (RE-2013)/2009-2014 dated 13.03.2015, No Objection Certificate (NOC) for export is issued by the Department of Defence Production, Ministry of Defence, as per the provisions of the Standard Operating Procedure (SOP) for the items listed in the list of military stores attached to this notification. However, there are certain defence items, which are not listed in the list of military stores attached to this notification. These are primarily dual use items and are, therefore, listed in the SCOMET list of the Directorate General of Foreign Trade (DGFT), which is available atwww.dgft.gov.in
  2. Exporters, while undertaking export of defence items, are required to first refer to the list of military stores attached with above-mentioned notification and then, SCOMET list of DGFT. If the items, proposed to be exported by the exporter, are listed in the list of military stores attached to the DGFT notification, the exporters are required to obtain a No Objection Certificate (NOC) from Department of Defence Production as per the SOP mentioned below. However, if the items of export are listed in the SCOMET list of the DGFT, the exporters would be required to obtain the NOC from the O/o DGFT as per the rules and procedures of DGFT. For this, the exporters may refer to the DGFT website at www.dgft.gov.in
B. Export Profile of Indian Defence Industry

  1. The value of defence export by DPSUs, OFB and the Private Sector Companies (based on the NOCs issued), for the financial year 2015-16 was Rs. 1693.80 crore as compared to Rs. 994.04 crore during the financial year 2014-15. The trend in export shows phenomenal growth by the industry. The export by private defence industry has shown accelerated growth. About 12-14 companies in the private sector have contributed to defence exports.
  2. Some of the major export destinations for defence products have been Algeria, Afghanistan, Israel, Ecuador, Russia, UK, Indonesia, Nepal, Oman, Romania, Belgium, Vietnam, Myanmar, South Korea and Sudan. The major defence items being exported are Personal Protective Items, Offshore Patrol Vessels, Spares for Radar, Cheetal Helicopters, Turbo Chargers and Batteries, Electronic Systems (EOPOD ALH System), and Light Engineering Mechanical Parts etc.
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Defence Exports
S.No. Title Download
1 Strategy for Defence Export Download (205.22 KB)
2 Revised Standard Operating Procedure (SOP) for export of military stores Download (388.77 KB)

Copyright: Department of Defence Production
 

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STRATEGY FOR DEFENCE EXPORTS
Background

Self-reliance and indigenization in defence is important for both strategic and economic reasons and has, therefore, been an important guiding principle for the government. Government considers that the industrial and technological development in the sector have made it possible to achieve this objective by harnessing potential of Indian industry along with the technological capabilities developed by academic and research institutions. Though India has made rapid strides in defence technology and industrial base in recent past, it is yet to cover a significant ground in terms of new products development and scale of production. The domestic defence industry would have limited scope for investment in R&D and production if it relies only on the domestic demand.
2.
There is a need to promote investment in the defence sector, both in R&D and production, thereby resulting in higher self reliance and indigenization. While putting in place the policy framework and procedural mechanisms, the thrust would be on indigenous production and exploring possibilities of exports to other nations that may look forward to supplies from India. Since the defence technology needs long term investment, its obsolescence is high with low economies of scale. Hence, the policy of maximizing indigenous production without well supported R&D policy and export strategy may not bring desired results. Therefore, the defence industrial policy has to be supplemented by the strategy for defence exports without which the economic base of the defence industry would be difficult to sustain in the present economic competitive environment.
3.
The Government has already announced a Defence Production Policy in 2011 with an objective to achieving substantive self reliance in design, development and production of equipment/weapons systems/platforms required for defence in as early a time frame as possible; to create conditions conducive for the private industry to take an active role in this endeavour; to enhance potential of SMEs in indigenization to broaden the defence R&D base of the country. While the Defence Production Policy lays due emphasis on indigenous production of defence equipments with a greater role of private sector, SMEs and R&D institutions, the objective of Defence Production Policy will not be achievable without having a well thought out export strategy, so that the industry is assured of access to export markets in addition to domestic market for investing in the sector.
Need for Strategy for Export of Defence Products

4.
Ministry of Commerce & Industry already has an overall Export Policy in the form of Foreign Trade Policy (FTP), which, inter-alia, includes various export promotion schemes, duty/ tax exemptions and other facilitative measures. Therefore, there may not be a need for having a separate Defence Export Policy. Instead, there is a need to put in place a specific strategy for encouraging defence exports within the overall ambit of FTP. The strategy may include measures required for promotion/ facilitation of defence exports through institutional mechanisms and streamlining the process of issuing NOC/ clearance for export of military stores. Accordingly, following strategy would be adopted to encourage export of defence products.
Export Promotion/ Facilitation
Export Promotion Body.

5.
A specific export promotion/ facilitation body would be set up with participation from industry representatives. The body could be in the form of a society or a not for profit company under the Companies Act. The role of the body would be to render advice to government on various export related issues, coordinate all export facilitation schemes of the government, increase awareness amongst the industry about various export facilitation measures and promotion of exports through specific marketing efforts in targeted countries. The body will identify the suitable export markets in consultation with Ministry of External Affairs and Department of Commerce, keeping in view our foreign policy and various international export control and arms control regimes. The body would be a nodal agency of Ministry of Defence for the purpose of organizing defence exhibitions in India and abroad. The body would also act as a nodal point of Ministry of Defence for participation in exhibitions abroad.
Defence Export Steering Committee
6.
In the government, a body namely Defence Exports Steering Committee (DESC) under the Chairmanship of Secretary, Department of Defence Production would be constituted. The Committee will have representatives of Armed Forces, DRDO, PIC Wing, Acquisition Wing, MEA, DGFT. Wherever required, the views of industry representatives and other experts will be taken. The functions of this Committee would include consideration and taking decisions on cases of export permissions, which are outside the purview or scope of subordinate authorities/committees particularly export of indigenously developed sensitive defence equipments, monitor the progress in defence exports and suggest specific steps/ strategy to boost exports.
Government Support to Defence Exports
7.
The world over, defence exports are covered by the defence diplomacy between friendly countries. This also contributes to building local operational capabilities and, therefore, enhances inter-operability with our own forces, especially during UN peacekeeping missions. Wherever feasible and required, the industry delegations from public/ private sector/ JVs of private and public sector would be included in bilateral meetings/ discussions with various countries so that the importing country gets due comfort while importing from India. If required, Industry delegations would be taken to target countries under the leadership of officials or DPSUs representatives. Indian Embassies/Missions abroad would be associated in making targetted efforts for promoting export of Indian defence products.
Export Financing and Other Incentives
8.
Specific incentives and promotion schemes for defence exports may be implemented in consultation with the Department of Commerce, industry associations and Ministry of External Affairs within the purview of Foreign Trade Policy. Line of credit facility available in Ministry of External Affairs would be leveraged suitably to promote defence exports from India. Wherever feasible, the possibilities will also be explored for financing of defence exports through EXIM Bank. Similarly, Buyer’s Credit facility of Department of Commerce would also be leveraged. A separate strategy to finance the exports to weaker countries would be worked out in consultation with MEA, EXIM Bank, DPSUs, private sector and other financial institutions.
Use of Offset Policy
9.
Offset is an important mechanism available to the domestic industry to enhance export capability. The Offset Policy may be reviewed and aligned towards final integration of weapons/systems in India and promoting export of such systems from India. The Policy may also be reoriented towards acquisition of critical technologies required for high end weapons/platforms so that the same can be leveraged for export.
Export Regulation
Issue of NOC

10.
Presently export of defence equipments/weapons is regulated by two Departments. For items contained in the SCOMET list of Foreign Trade Policy of DGFT, export licences are granted by DGFT based on the Inter-Ministerial Working Group set up in DGFT. Ministry of Defence is one of the members in the Inter Ministerial Working Group. For military stores, No Objection Certificate (NOC) is issued by the Department of Defence Production. The procedure for issuing the NOC in case of military stores has not been put in the public domain due to non availability of list of military stores. The present Standard Operating Procedure (SOP) would be revised and streamlined to provide a clarity regarding the procedure and will be put up in public domain. The issues related to End User Certificate (EUC) and providing ‘in principle’ clearance to the industry, so that it can explore export opportunities, would be addressed in the revised SOP appropriately.
Online and Time Bound Clearance
11.
A system of time-bound clearance for export permissions/ NOC would be introduced. A web based system would be developed to receive applications for NOC online and convey the NOC to the companies online.
Export of Indigenously Developed Sensitive Systems
12.
For indigenously developed strategic and sensitive weapons/ platforms, the Defence Export Steering Committee will take appropriate decisions regarding exportability of item with/ without modification or degradation. Export of such items would be considered on case to case basis and NOC/ clearance would be issued with the approval of Hon’ble Raksha Mantri based on the recommendations of the Defence Export Steering Committee.
Implementation and Review
13.
Some of the administrative actions like finalization of procedure and constitution of Defence Export Steering Committee etc. would be completed within three months. For formation of export promotion/ facilitation body, a Committee has been constituted in Department of Defence Production. Further action for setting up such export promotion body shall be taken expeditiously, based on the report of the Committee.
14.
Annual Review of the policy along with the review of exports would be presented before Raksha Mantri for his guidance and further action.
http://www.ddpmod.gov.in/sites/default/files/STRATEGY FOR DEFENCE EXPORTS.pdf
 

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India steps up supply of military equipment to Myanmar

NEW DELHI: Steadily cranking up military ties with Myanmar as part of the overall policy to counter China's strategic inroads in the region, India is now also going to export lightweight torpedoes to the country.

India is already providing rocket launchers, mortars, rifles, radars, night-vision devices, Gypsies, bailey bridges, communication and Inmarsat sets as well as road construction equipment like dozers, tippers and soil compacters to the Myanmarese armed forces.

The export documents for the $37.9 million deal with Myanmar for the indigenously developed torpedoes, in turn, were presented to finance-cum-defence minister Arun Jaitley at function here on Friday.

The function, which included the presentation of the annual DRDO excellence awards, also saw Jaitley hand over three indigenously-developed products - USHUS-2 submarine sonar suite, directing gear and inertial navigation system for warships - to Navy chief Admiral Sunil Lanba.

DRDO chief S Christopher said the export of the light-weight torpedoes, which have been developed by his organization and are produced by defence PSU Bharat Dynamics and engineering giant L&T, would follow the earlier supply of naval sonars, acoustic domes and directing gear to Myanmar.


Indian Army, on its part, is also stepping-up coordinated patrolling with Myanmarese forces along the porous 1,643-km bilateral land border to turn the heat on Indian insurgent groups operating in the region.

http://timesofindia.indiatimes.com/...unter-china/articleshow/57815200.cms?from=mdr
 

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India steps up supply of military equipment to Myanmar

NEW DELHI: Steadily cranking up military ties with Myanmar as part of the overall policy to counter China's strategic inroads in the region, India is now also going to export lightweight torpedoes to the country.

India is already providing rocket launchers, mortars, rifles, radars, night-vision devices, Gypsies, bailey bridges, communication and Inmarsat sets as well as road construction equipment like dozers, tippers and soil compacters to the Myanmarese armed forces.

The export documents for the $37.9 million deal with Myanmar for the indigenously developed torpedoes, in turn, were presented to finance-cum-defence minister Arun Jaitley at function here on Friday.

The function, which included the presentation of the annual DRDO excellence awards, also saw Jaitley hand over three indigenously-developed products - USHUS-2 submarine sonar suite, directing gear and inertial navigation system for warships - to Navy chief Admiral Sunil Lanba.

DRDO chief S Christopher said the export of the light-weight torpedoes, which have been developed by his organization and are produced by defence PSU Bharat Dynamics and engineering giant L&T, would follow the earlier supply of naval sonars, acoustic domes and directing gear to Myanmar.


Indian Army, on its part, is also stepping-up coordinated patrolling with Myanmarese forces along the porous 1,643-km bilateral land border to turn the heat on Indian insurgent groups operating in the region.

http://timesofindia.indiatimes.com/...unter-china/articleshow/57815200.cms?from=mdr
 

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DRDO-developed torpedo to be exported to Myanmar
A DRDO-developed torpedo, a naval weapon system with an explosive warhead, will be exported to Myanmar.
This was announced at an event organised by the premier defence research laboratory.
It is learnt that the size of the order from Myanmar is around USD 37 million.
The technology for the torpedo is developed by DRDO and the system will be manufactured by a defence manufacturing firm.
Earlier, India had supplied a sonar navigation and surveillance system to Myanmar and size of the order was around Rs 180 crore.
 

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^^^^^
This has to be a ship launched torpedoes as they have no operational submarine for now.

It's most likely a ship launched torpedo, light or heavy weight?
 

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Indian Torpedo Systems in my knowledge;
  • TAL LwT
  • Varunstra Ship launched HwT
  • Takshak Ship Launched HwT
  • Takshak Submarine Launched HWT
  • Toprpedo with Thermal Propulsion called Shakti (can generate 500 kilowatt of power and rev up the engine within a second)
Interestingly,
Only the United States, the United Kingdom and Russia had torpedoes with thermal propulsion when India took up the challenge.
India also utilizes a Torpedo testing facility in Tajikistan, once alleged for developing nuclear torpedoes, if India really develops something like this, it can be third country after USSR and USA to have nuclear torpedoes.

Though, a nuclear torpedo may be useless for India, it doesn't fit in our Nuclear Doctrine and No First Use Policy.:)

Not going off topic, as Chinese subs have arrived Bangladesh, it makes sense for Myanmar to acquire more ASW warfare corvettes and ships from India.
 

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Army personnel get combat jackets from Bengaluru companies

BENGALURU: Bengaluru will meet two critical combat clothing needs of the Army, bullet-proof jackets (BPJs), which it has been trying to procure since 2009, and coats for extreme cold climates (coats-ECC) for those posted in areas like Siachen.

While the Tata Advanced Materials Limited (TAML), which won the tender for supply of 50,000 bullet-proof jackets (BPJs) in 2016 had a deadline of March 30, 2017, Gokaldas Exports has bagged an order for 3.03 lakh coats-ECC, and production is on. Both firms manufacture in Bengaluru.

"The company has already delivered 40,000 jackets to the MoD (ministry of defence) and will send another 10,000 a few days before the deadline," a Tata Sons Group spokesperson told TOI.

Sources confirmed that the complete order has already been delivered, though the Army still needs about 3 lakh more BPJs.

"The MoD has the option to place an order for another 25,000 BPJs, and the company can support further requirement. It has gone to great lengths to ensure quality of these jackets by subjecting them to various tests," the Tata spokesperson said.

On whether the firm is importing two critical components, the spokesperson said the hard armour and soft armour plates are imported from top European suppliers to ensure best quality is available to soldiers. "In future, the company intends to develop its own capabilities to make lighter and higher performance jackets. We are in touch with international experts in this field, and will welcome the opportunity to work with relevant authorities in India to set a roadmap for building capabilities that would ultimately benefit the soldiers," the spokesperson said.

Ordnance factory's loss
The order to make 3,03,900 Coats-ECC, sources in South Block said, was given to Gokaldas after the Ordnance Clothing Factory (OCF), Avadi, in Tamil Nadu, failed to supply the required coats. "There were issues of manpower and other challenges. However, now the cost is also cheaper than what it would cost at OCF," sources said.

The managing director of Gokaldas was not reachable. To an email, the MD's personal assistant, Bhaskharan Nambiar, said the firm could not immediately comment.

http://timesofindia.indiatimes.com/...from-bluru-companies/articleshow/57844513.cms
 

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Vital Defence Ministry meeting to take place for ventilating SP policy
Defence Minister, Arun Jaitley, on Monday is expected to arrive at a conclusion on the pending issue of Strategic Partner (SP) policy.
Defence Minister, Arun Jaitley, on Monday is expected to arrive at a conclusion on the pending issue of Strategic Partner (SP) policy.
The Defence Ministry’s apex procurement body, the Defence Acquisition Council (DAC), headed by Jaitley, will try to resolve concerns over the SP policy; “strategic partners,” – private companies nominated by the Defence Ministry as selected production agencies for defence equipment.
The SP policy intends to encourage Prime Minister, Narendra Modi’s “Make in India” initiative by engaging private industry to zeal defence production and create manufacturing jobs.
Private defence industry and companies hoping to enter this field will be following the developments carefully to see whether the SP policy will corner defence production for a handful of big players, or leave space for others to share the profits.
 

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Tonbo wins over N Africa, EU with $25m defence gear order

BENGALURU: Defence electronics startup Tonbo Imaging has won a $25-million border surveillance contract in North Africa and Europe (Macedonia border) to deploy electro-optics surveillance systems.

The contract was won against international competition from listed companies such as FLIR, Thales and other Israeli bidders. The Indian startup will be in charge of manufacturing and deploying night vision, thermal imaging and longrange surveillance systems.

The total order value of $25 million will be executed over the next two years.



"Along with our electro-optics systems, we have the opportunity to offer radars and other equipment [as well]," said Arvind Lakshmikumar, CEO, Tonbo Imaging. He added, "For this, we have been proposing the integration of Indian Public Sector Unit (PSU), Bharat Electronics (BEL) system."

While the customers want a different radar manufactured by the US, the startup has been pushing for the use of BEL radars, he said.

"BEL has offered one of its ground surveillance radars to Tonbo Imaging for one of its bids by an international customer. BEL is extending the required support to Tonbo Imaging and both teams are working together to meet the enduser requirements," said a press statement released by BEL.

Europe has been facing a tricky situation with respect to immigration flows and instances of trespassing in their maritime and land borders.

In a move to resolve this situation, EU has given out tenders to enhance its border surveillance. "We have teamed up with Tonbo and providing an integrated solution regarding border surveillance maritime and land borders which includes Tombo's electro-optic and IR suit, command control stations and sensors," said Zach Sarris, CEO, Altus LSA the prime integrator of Tonbo Systems based out of Greece.

Though individual systems like night vision and thermal imaging are developed by Tonbo, the startup needs to tie up with local integrators to deploy the systems at client locations.

Partners like Altus LSA act as prime integrators of Tonbo Systems for European and African markets.

With respect to border surveillance, there is a large diversification of terrain ranging from rivers, lands, mountains and the like. "The surveillance systems provided should be able to adapt to specific needs of the terrain, which is something Tonbo provides," Sarris said.

The startup has been a significant contributor to defence exports from India at par with Indian PSUs.

Last year, ET reported that the startup won a $100-million contract with the Peruvian Army to manufacture and export 'night-vision sights' for guns. Of the $100 million, the firm got the first $5.6 million purchase order this year.

http://economictimes.indiatimes.com...m-defence-gear-order/articleshow/58022122.cms
 

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IIT-Bombay develops first indigenous thermal imaging devices

www.thehindu.com/news/cities/mumbai/iit-bombay-develops-first-indigenous-thermal-imaging-devices/article18460017.ece





Feeling the heat: The sensor captures the thermal signature emanated by a subject and is accurate to the point of picking up minor temperature differences.


A milestone for the Indian scientific community, with applications in defence, space, medicine, and surveillance
Night-vision devices like goggles or telescopes are a key part of modern military and security operations. while the Indian Army relies heavily on these devices for a range of operations, they have never been produced indigenously.

A team of scientists from IIT-Bombay have now made a key breakthrough in developing India’s first infrared sensors for thermal imaging.

The research started in 2010, with funding from the Defence Research and Development Organisation. The details of the work were published in the prominent science journal Current Science in April 2017.

Made in India

The technology, the scientists say, can be used for a range of applications such as night vision, surveillance and — going beyond military and security operations — even in the detection of cancers.

“The successful development and demonstration of indigenous infrared sensors to image human objects is a major milestone for the Indian scientific community,” says Subhananda Chakrabarti, of IIT-B’s department of electrical engineering, where the infrastructure for creating the sensor was developed.

In an air conditioned room in the department, Prof. Chakrabarti and his team are able to use the sensor to capture startlingly clear images of human subjects, even when the room is in complete darkness. The sensor captures the thermal signature emanated by a subject and is accurate to the point of picking up minor temperature differences: put your hand on a cold surface for two seconds for instance, and that sport on your palm registers darker on the camera.


“The focal plane arrays, which is at the heart of all thermal imagers, involves a number of complex fabrication steps,” Prof. Chakrabarti says.

“IIT Bombay’s research group have successfully optimised each of these steps in-house and thereby the flipchip bonded sensor arrays can be entirely fabricated in this country. This will make the indigenous thermal imaging or night-vision technology affordable and cheaper and will serve as a perfect example of Made In India.”

Crucial for defence

This project could, perhaps, be the first significant development in the push for indigenous military equipment production. According to Prof. Chakrabarti, the DRDO spends about ₹1,000 crore per year on importing night-vision devices to equip Indian soldiers and has been searching for an indigenous solution for over two decades.

A July 2016 article in Force, a national security and aerospace news magazine, says the Army had restarted procurement for night-vision devices and had asked both public and private sector companies involved in the manufacture of night-vision devices to come forward with proposals under the Make In India programme. The Army’s proposal, it said, will take into account the Indian content in the final product and technological tie-ups with foreign companies. The article noted that after the Uri attack in 2016, night vision devices were seen as a crucial requirement in the wake of heightened infiltration attempts across the Line of Control.

Future applications

Prof. Chakrabarti says that that the next step the team will follow is to integrate the device with coolers, and to miniaturise it so that it can be used in a variety of applications. As a first step, he suggests that the technology can be used on telescopes mounted on rifles or tanks, and as the process of miniaturisation progresses, it can possibly be used to manufacture night-vision goggles. “Besides use by the Army, the sensor can also be used by ISRO for surveillance. And we also hope that there are future applications in the medical field, particularly in the detection of cancer.”

This achievement, Prof. Chakrabarti says, should provide impetus to the indigenous development of technologies for night vision and surveillance, because they are relevant to the requirements of both the DRDO and ISRO. But, he says, to take these developments further and make them useful for India’s defence, space, and other sectors, it is essential that a more focused centre for infrared technologies be set up in the country. Currently, experiments with these technologies are in isolated centres and the development of successful applications is rare.
 

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Has policy for FDI in defence sector been formulated ? Can someone please share links (preferably official ) for defence FDI policies and framework ?
 

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We now moved from FDI to something similar called Strategic partnership SP policy in Defence manufacturing where a local player has to choose an international player to bid for defence projects which will be jointly manufactured or assembled here under makeinindia scheme ..Its almost similar to FDI just that here the international player will be investing more on knowledge resources and the local player on capital and infrastructure ...:laugh:

Has policy for FDI in defence sector been formulated ? Can someone please share links (preferably official ) for defence FDI policies and framework ?
 

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We now moved from FDI to something similar called Strategic partnership SP policy in Defence manufacturing where a local player has to choose an international player to bid for defence projects which will be jointly manufactured or assembled here under makeinindia scheme ..Its almost similar to FDI just that here the international player will be investing more on knowledge resources and the local player on capital and infrastructure ...:laugh:
That is a great news. Now where can I find link to Strategic Partnership SP policy ?

And also focus areas for Strategic Partnership ?
 

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Privatizing arms manufacturing has India's federal workforce seeing red

http://www.defensenews.com/articles...with-loosening-its-grip-on-arms-manufacturing
some one please tell me why the fuck am I not surprised these bloody good for nothing sarkari chai biscoot babus sitting on their asses is the single biggest resone we haven't reached any where I love it when these bloody pigs squeem I say the government should only concentrate on ruling it should have no part in economy of the country the Bombay plan is well past its sell by date now give it a proper cremation and say ram nam sataya hai
 

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