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Boost for defence manufacturing: Government provides private firms level-playing field with defence PSUs
NEW DELHI: In a move to up defence manufacturing, government has given a level playing field to private participation along with defence PSUs. There was a long standing demand of the private sector manufacturers to bring parity between domestic private players with Ordinance Factory Board and Defence PSUs in the matter of payment of Central Excise and Customs Duty.
As a major game-changer, the government has withdrawn excise and customs duty exemptions presently available to goods manufactured and supplied to Ministry of Defence by Ordinance Factory Board and Defence PSUs vide Notifications No. 23/2015-Central Excise and No. 29/2015-Customs dated 30.04.2015.
According to the Ministry of Defence release, this will provide a level playing field to domestic private players bidding for government contracts by taking away the strategic advantage with PSUs for quoting lower rates in open bids. With this initiative, the government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, Lockheed Martin, BAE Systems etc. who are actively exploring the scope of future investments in India.
The government has systematically opened up the sector for private investment by increasing FDI cap in defence to 49% and rationalizing conditions. Almost 60% items required for industrial licence have now been de-reserved. Business re-engineering process has been effected across Departments and Ministries for a favourable manufacturing and export platform for private sector companies. "The recent Notification from Department of Revenue will provide a definitive message to foreign OEMs that India is open to business for defence manufacturing," the release said.
Defence manufacturing is one of the key sectors among the 25 sectors identified under the Make in India campaign launched by Prime Minister Narendra Modi-led NDA government.
Boost for defence manufacturing: Government provides private firms level-playing field with defence PSUs - The Economic Times
NEW DELHI: In a move to up defence manufacturing, government has given a level playing field to private participation along with defence PSUs. There was a long standing demand of the private sector manufacturers to bring parity between domestic private players with Ordinance Factory Board and Defence PSUs in the matter of payment of Central Excise and Customs Duty.
As a major game-changer, the government has withdrawn excise and customs duty exemptions presently available to goods manufactured and supplied to Ministry of Defence by Ordinance Factory Board and Defence PSUs vide Notifications No. 23/2015-Central Excise and No. 29/2015-Customs dated 30.04.2015.
According to the Ministry of Defence release, this will provide a level playing field to domestic private players bidding for government contracts by taking away the strategic advantage with PSUs for quoting lower rates in open bids. With this initiative, the government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, Lockheed Martin, BAE Systems etc. who are actively exploring the scope of future investments in India.
The government has systematically opened up the sector for private investment by increasing FDI cap in defence to 49% and rationalizing conditions. Almost 60% items required for industrial licence have now been de-reserved. Business re-engineering process has been effected across Departments and Ministries for a favourable manufacturing and export platform for private sector companies. "The recent Notification from Department of Revenue will provide a definitive message to foreign OEMs that India is open to business for defence manufacturing," the release said.
Defence manufacturing is one of the key sectors among the 25 sectors identified under the Make in India campaign launched by Prime Minister Narendra Modi-led NDA government.
Boost for defence manufacturing: Government provides private firms level-playing field with defence PSUs - The Economic Times
