Defence Minister Manohar Parrikar will meet industry association on Monday to discuss the proposal of strategic partnership agreements, under which private sector defence manufacturers will be able to work with the government on developing technology for critical projects.
Sources said a number of defence associations as well as five members each from industry bodies Confederation of Indian Industries, Federation of Indian Chambers of Commerce and Industry, Assocham and PHD Chambers of Commerce and Industry will attend the meeting.
The defence industry has, however, opposed the proposal of strategic partnerships as it is of the view that this will work in favour of only a few established companies.
Significantly, even large players are not keen on the idea as they are of the view that it will restrict them to certain sectors.
Recently, Captain (Retd) Amrinder Singh, a member of the Parliamentary Standing Committee on Defence, had written to the Defence Minister arguing against the proposal on the grounds that it would lead to ‘crony capitalism’.
The proposal has also not found favour with the three chiefs of the Armed forces who are said to have raised concerns on awarding contracts to only a few large companies and in critical sectors of defence manufacturing.