Activities Round Up

Date : 28 Apr to 28 Apr 2016
Place : New Delhi
Organised by : FISME

FISME presents MSMEs’ views before Defence Minister on selection of Strategic Partner

During a high-profile meeting called by  Raksha Mantri Shri Manohar Parrikar to discuss the Atre Committee recommendations on selection of Strategic partners,   FISME demanded that 60% procurement should be done from Indian vendors and at least  20% procurement from MSMEs.

FISME delegation was led by Shri Anil Agarwal, Sr. Vice President. 

A new concept of Strategic partner in Defence procurement was mooted by the Dhirendra Singh Committee which was formed to review the defence procurement procedure. It involves identification and  selection of Indian private sector defence manufacturers as “strategic partners” to develop “complex and strategic systems”  within the country, or receive technology transferred from foreign suppliers in large defence contracts.  Such systems could be aircrafts, ships, submarines etc.

In a detailed memo submitted to the Defence Minister, FISME highlighted that there is bias against MSMEs in defence procurement that runs deep in the system and getting MSMEs into game would require upfront affirmative policy interventions.    It said that MoD must make it mandatory to actively involve MSMEs selected by the strategic partners for a particular project right from the beginning.  It also asked MoD to allow consortiums as strategic partner.

FISME has since launched MSME Defence Suppliers’ Group.