The Modi government has drawn the blueprint of the process of choosing private companies for the country’s major defense projects. The Ministry of Defense is ready with the roadmap of the process of selection of private sector companies in the production of military materials for the country. This roadmap can be reached by this week. Financial strengths, technical capabilities and existing infrastructure, these will be the three parameters on which the Indian companies will be selected, while parallel processes for selection will be run on the technical and business basis for the foreign partners.

A pool of 6 Indian companies will be built and given special status in the new Strategy Policy (SP) model of the Ministry of Defense. Once the pool is built, the companies will start getting opportunities to make big Defense Production Deal (about $ 20 billion).

According to this policy, in the first phase, 6 Indian companies will have to qualify for bidding for four major projects. These four major projects include submarines for the navy, an engine fighter for air force and construction of vehicles equipped with a helicopter and other weapons for the army.

Interestingly, almost all the Memorandum of Undertaking (MoU) signed between Indian companies and foreign participants for these projects will be lost in the last three years after the new policy comes. The Ministry of Defense will invite companies for qualification process in a short time. Companies will be asked to fix their priority in all four projects. After that, a total of 6 companies will be selected based on financial scales and qualifications.