The Defence Acquisition Council (DAC), in a landmark decision on January 31, also approved indigenous construction of six submarines for the Indian Navy at a cost of over 40,000 crore. This is the second project under the MoD’s ambitious Strategic Partnership (SP) model that aims at providing a significant fillip to the Government’s ‘Make in India’ programme. SP model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM to set up production facilities in the country. The model has a long term vision of promoting India as a manufacturing hub for defence equipment through transfer of niche technologies and higher Indigenous Content thereby enhancing self-sufficiency for meeting the future requirements of the Armed Forces.

Today’s DAC approval would be second such project following indigenous production of 111 Naval Utility Helicopters that was approved in August 2018. Construction of six submarines under Project 75(I) will provide a major boost to the existing submarine design and manufacturing ecosystem in India through transfer of design and equipment technology as well as necessary skill sets. The DAC also approved the acquisition of approximately 5,000 Milan Anti Tank Guided Missiles for the Army.