Made in India arms: Pvt players eye long-term contracts under new policy

Lack of long-term contracts had choked off private investment in the sector

Defence Minister Arun Jaitley's statement last week about a new defence manufacturing policy has raised hopes that the ministry will finally sign the dotted line for the long-pending strategic partnership policy.

“Under the policy, private sector companies will be chosen for 'strategic partnerships' in six broad areas — ranging from aircraft and warships to tanks and guided missile systems. The 'strategic partnership model', which is meant to create capacity in the private sector on a long-term basis, over and above the capacity and infrastructure that exists in defence PSUs (public sector units), will gradually replace the existing system of awarding