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Strategic Partnership Model: Repackaging RUR

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The Experts Committee has recommended the Strategic Partnership Model (SPM) for creating capacity in the private sector, over and above the capacity and infrastructure that exists in Public Sector units. The SPM model is recarnation of RUR concept suggested over decade back by Kelkar Committee, which could not be implemented for reasons known…

Indian defence industrial base mainly comprises of Govt owned production agencies DPSUs, PSUs or OFB. The Indian private industry has been playing a peripheral role. For more complex and strategic systems, the technology transfer today invariably happens through public sector entities. As a result, these entities quite often get overburdened vis a vis their existing capacity constraints. Even otherwise, there is a need to create a capacity for absorbing technology for such systems in the private sector on account of their agility, innovation and modern management practices. To harness the strengths of private industry, there is a need to evolve well-defined models. The Experts Committee has recommended three models for the Indian set up  Strategic Partnership, Developmental Partnership and Competitive Partnership. According to the Committee, the choice of the model should be based on “strategic needs, quality criticality and cost competitiveness". These models would depend upon the systems and products within the ambit of that model. In present case we study the Strategic Partnership Model.

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