FDI in Defence Sector

[Hindustani78]

Ministry of Defence
24-July, 2015 16:31 IST
FDI in Defence Sector

In pursuance to the Inter-Governmental Agreement between India and Russia signed in February 1998, a Joint Venture company BrahMos Aerospace, between the Defence Research & Development Organization (DRDO) of India and NPO Mashinostroyenia of Russia has been formed for design, development, production of a Supersonic Cruise Missile.


FDI amounting to US$ 1.31 million has been received in the defence sector during the last three years and the current year.

Since opening up of FDI in defence sector, 34 proposals involving foreign investment have been approved so far. The details of the approved proposals along with the items are as below :-


Sl. No. - Name of the JV/Implementing Company
Items of manufacture

1 . M/s Multirole Transport Aircraft Ltd -
Co-development & Co-production of a Multirole Transport Aircraft of 15-20 Ton category jointly with Russian partners.

2 . M/s HAL-Edgewood Technologies Limited
Development and Manufacture of high technology miniature electronic modules and avionic systems for aerospace applications.

3. M/s HALBIT Avionics Private Limited
Design, Development, Market and Support products such as Aircraft Simulators and Services and to subsequently enhance the scope of products to airborne avionics products. Development of State of the Art technology.

4 . M/s Bharat Electronics Ltd
Design, Development, marketing, supply and support of civilian and select defence Radars for Indian and global markets.

5. M/s Alpha-ITL Electro Optics Private Limited
Manufacture of optical goods and equipment and optical instruments.

6. M/s HBLElta Avionics Systems Private Limited
Radar, EW Systems, Electronics Communication systems.

7. M/s BF Systems Limited
To provide complete support for Light Weight Howitzer and other small & medium caliber weapons programs, inclusive of engineering, design & development, manufacturing services and upgrading.

8. M/s. Alpha Electronica Defence Systems Pvt. Ltd.
Production, assembling, testing, repair and support for EW equipment and systems for land/shipbased/airbased platforms.

9. M/s ArmetArmored Vehicles (India) Ltd.,
Manufacture of bodies (including Cabs) designed to be mounted on motor vehicles chassis for special purpose motor lorries, armoured cars etc.

10. M/s Samtel Thales Avionics Pvt. Ltd. New Delhi
Development, Manufacture & selling of helmet mounted sight display.

11. M/s Astra Micro wave Products Ltd, Hyderabad
Design, development, manufacture & supply of components & sub-systems for wireless communication for application in defence, space & cellular communication.


12 M/s Mahindra Defense systems Ltd, New Delhi
Manufacture & marketing of defence equipment in the land sector.

13. M/s Taneja Aerospace & Aviation limited
(i) Armour panel for helicopter, (ii) Body armour.

14. M/s Vyoneesh Technologies Pvt Ltd., New Delhi
Manufacturing, Designing, Selling, Undertaking Overhauling and Maintenance Activities for all kind of Engg. And Technology Related Equipment and Products including Aircrafts.

15. M/s ICOMM Tele Ltd,Hyderabad.
Engaged in engineering, procurement and construction services in the telecommunication, power transmission and distribution, water and sewerage sectors, manufactures telecommunications and power transmission towers, research, development and manufacture of active telecommunications infrastructure and equipment for a variety of sectors including defence related telecommunications equipment.

16. M/s Lakshmi Machine Works Limited, Coimbatore
Manufacturing of entire range of Textile Spinning machinery. Proposed additional activities: manufacturing of parts, components and accessories for aircraft and spacecraft to be supplied to civil and defence sector.

17. M/s Tata Aerostructure Limited, Mumbai
Design, manufacture, supply procurement and life cycle support of advanced aerospace and aero structures items for defence aircrafts, helicopters, and unmanned airborne vehicles including empennages and centre wing boxes (NIC Code-377.8).

18. M/s Larsen & Toubro Ltd, Mumbai
Manufacturing, distributing, and marketing of products in the market segments of electronic warfare, military avionics, mobile systems (defence related) and radars (NIC code 359.4).

19. M/s ABG Shipyard Ltd, Mumbai
Existing Activities: Shipbuilding, ship repair(NIC Code: 3899 & 3402)
Proposed Activities: Defence products: NICCode:370,359,359.4,365,366,367& 370.8.

20. M/s Jubilant Aeronautics Pvt Ltd, Delhi
Manufacture of different types of Unmanned Aerial Systems and accessories (NIC Code: 3770).

21. M/s Maini Precision Products Pvt Ltd.
Existing activities: Engaged in the business of manufacture and export of high precision parts for automotive, material handling, general engineering purposes. Proposed additional activities: to manufacture parts and accessories of aircraft and spacecrafts (NICCode:377.8).

22. M/s Park Controls & Communications Ltd, Bangalore
Existing Activities: Engaged in the business of defence Avionics solution provider. Proposed addition activities: activities to manufacture of onboard/data acquisitions systems, avionics, timing products, time code readers, ground based telemetry systems and other electronic aerospace and defence equipment.

23. M/s Rossell Aviation Private Ltd.
Proposed Activities: To engage in civil &defence aviation filed with focus on product support services, repair and maintenance facility, providing training solutions in project.

24 M/s Indian Rotorcraft Ltd.
To engage in the business of undertaking final assembly of both military and civil versions of AgustaWesland’sAW119Kx Helicopters.

25. M/s Tara Aerospace Systems Ltd, Mumbai
Existing: Manufacture of parts for civilian aircrafts.
Proposed: Design, development, engineering, manufacturing, integration, assembly, testing and inspection and fixed-wing aircrafts, including products such as aerospace and aero structures components, kits and accessories in the defence sector.

26. M/s Larsen & Toubro Ltd, Mumbai
Defence Production.

27. M/s Space Era Materials and Processes Pvt Ltd.
Engaged in the business of design, development, manufacture, assembly, repair and overhaul of the equipment of telecommunication and avionics used in aircrafts, radars and other electrical and electronics defence components, aggregates and equipment in India.

28. M/s Track Systems India Private Limited
Manufacturing, assembling, marketing, trading, dealing in import and export of tracks and parts thereof and running gear components required for the defence sector.

29. M/s Amertec Systems Pvt Ltd.
Manufacturing of advanced electronic systems, test systems, simulators and electronic systems for military applications.

30. M/s Hical Technologies Pvt Ltd.
Manufacture of wiring, cable and harness for aeronautics and defence sectors (civil and military) and test benches.

31. M/s. BF Elbit Advanced Systems Pvt. Ltd.
Manufacture of Artillery Guns/Howitzers, Mortars, Ammunition, manufacture of Tactically protected vehicles.

32. M/s SasMos Het Technologies Limited
Existing: Assembly/Manufacturing of Cable Assembly, interconnection systems, Electrical & Electronic Panels for Aerospace & Defence applications.

Proposed: Manufacturing of Electronic Warfare Sub-systems, Automatic Test Equipment, Avionics & Radar Sub-Systems, Unmanned Vehicle Sub-Systems, Command & Control Systems and Navigational Sub-systems and related parts and accessories for Airborne, Ground & Naval application in addition to existing activities.

33. M/s Quest Global Manufacturing Private Ltd
Manufacturing for Indian Defence Sector including defence aerospace and participate in offset program.

34. M/s Ideaforge Technology Pvt Ltd.
Existing Manufacturer of Unmanned Aerial Systems mainly supplied to defence sector.


This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri P.K. Biju and Shri Nishikant Dubey in Lok Sabha today.

DM/NAMPI/RAJ

 

[Hindustani78]

Ministry of Defence
18-November, 2016 19:05 IST
Manufacturing of Ammunition

Department of Industrial Policy and Promotion (DIPP) has issued 14 licenses to 14 Indian Private companies for manufacture of ammunition. The private companies having Industrial Licenses can get the orders against competitive bidding and therefore the estimated costs in respect of ammunitions likely to be manufactured by them will not be known before hand.


The list indicating the industrial licenses is as under:

1. Indtech Construction Pvt. Ltd
BanmoreIndl. Area, Distt; Morena, Madhya Pradesh
Small Arms & Ammunition Viz: 5.56mm, 7.62mm, 9mm, 12.7mm & 14.5 mm Calibres only DIL: 74(2006) , DT.4.10.2006

2. Larsen &Tourbo Ltd, Mumbai
Location in More than one State

Design, Development & Mfr. of Arms & Armament etc. Including Weapon Launchers & Launch Systems Land, Ship and Airborne Platform Based- Including their sub-systems.
Mfr. & Assembly and testing of Mortars, Field Guns, Air Defence Guns, Anti- Tank Weapon System etc. including associated systems & sub systems, Mortar, Suns, Weapon System.
Armament Including Ammunition / Ordnance like Missiles, Rockets, Torpedo Land / Naval Mines, Depth Charges Including.
Li: 53(2002), Dt.20.8.2002 Converted into Cil:10(2007) Dt.31.7.20

3. M/s Vem Technologies Pvt.Ltd
Sy. No.1/1 of Imarat, Kanch, Reviral, Village Maheshwaram, Rangareddy, A.P
Assembly, Integration & Checkout of Arms and Ammunitions (Rocket and Missiles), Hydraulics, High Pressure Pneumatic Systems and their Sub-System, Launch Control & Battle Management Systems
DIL:70(2007) Dt.30.10.07

4. M/s Sec Industries Pvt. Ltd.
6-25, Opp.IDPL Project, Balanagar, Distt. Hydrabad, Andra Pradesh
Static and Mobile Launchers for Air Launch Missiles (Short, Medium and Long Range), Rockets, Bombs & Ammunitions and PTAS both Land and Ship based including their sub-systems and upgrades
Dil:75(2008) Dt.14-08-2008

5. M/s Lords VanijyaPvt. Ltd.23/SIA/IL-2013
Jalan Complex, Gate:3, Lane-7, Village-Kolora, Howrah, West Bengal-711411
Manufacture and assembly of Ammunition, Empty Fuzes, Primers and Switches.
DIL:03(2015) DT:21/01/2015

6. M/s Micron Instruments Pvt. Ltd. 4/SIA/IL-2014
Unit-I, 143, Industrial Area, Phase-I, Chandigarh,
Unit-II, Plot No.277-279 & 288-290, HSIIDC Industrial Estate, Barwala, Distt. Panchkula Haryana
Weapon system such as Mortars, Rockets Launchers, Grenade Launchers and Missile Launchers.
Ammunition for Anti-Aircraft Guns, Artillery Guns, Tank Guns Mortars etc.
Rockets, Grenades, Missiles, Aircraft Bombs of various types.
Sub-Assemblies for Weapon Systems.
Sub-Assemblies for Grenades, Rockets, Aircraft bombs, Mortar bombs, Artillery Shells and Missiles
DIL:19(2015)DT:17/04/2015

7. M/s BF Elbit Advanced Systems Pvt Ltd. 6/SIA/IL-2013
Baramati Industrial Area, Tanddulwadi&Wanjarwadi, Taluka-Baramati, Pune, in the state of Maharashtra-413 206
Manufacture of Guns, Howitzers, Mortars, Protected Tactical Vehcles.
Ammunition including smart bombs and ready to fill shells excluding filing
Dil:35(2015) Dt:01/07/2015

8. M/s Solar Industries India Limited 30/SIA/IL-2014
Village Chadoh, Tahsil- Katol, District- Nagpur, Maharashtra.
Design, Development, Upgrade, Refurbished and production of ready to use ammunition of 40 mm and above calibre.
Ammunition fired from Artillery, tanks, Helicopters, Aircrafts and Naval crafts (Excluding small Arms and ammunition)
Design, Development, Upgrade, Refurbished and upgrade of ready to use
Rockets and missiles:
Rockets
Missiles (Tactical)
Filled Fuzes for Artillery shells, Mortar Bombs, Missiles, Grenades and similar Munitions of war.
Dil:49(2015) DT:07/07/2015

9. M/s Kalyani strategic system limited (KSSL)43/SIA/IL-2015
Bfl- General engineering division, Vaduth, Jarandeshwar, sataraMaharashra
Manufacture, Maintenance and overhaul of the following items:-
Ammunition and Fuze setting devices.
Bombs, Torpedoes, Rockets, Mines, Missiles, Depth Charges, Demolition Charges, Demoliton-Devices, Demolition Kits, Aircraft missile protection systems.
Energetic materials and related substances.
High Velocity Kinetic Energy Weapon systems and related equipment.
Directed Energy Weapon (Dew) system, related or countermeasures equipment and test models.
Electronic equipment used for ECM and ECCM, Surveillance, Intelligence, command and control system, GNSS.
Armoured or protective equipment.
Specialised equipment for Military training or simulators specially designed for training in the use of any firearm or weapon.
Imaging or countermeasure equipment
Concealment and deception equipment specially designed for military application.
Ground Vehicles namely tanks and other military Armoured/ Armed Vehicles and Military Vehicles fitted with mountings for arms or equipment for mine laying or the launching of Munitions includes all tracked and wheeled self-propelled armoured and non-armoured weapon systems and trailers for towed and static weapon systems.
Other ground vehicles namely all wheel drive vehicles capable of Off-Road use which have been manufactured or fitted with materials or components to provide ballistic protection to level III with mountings for arms or equipment for mine laying specially designed for military use.
Amphibious, Hovercrafts and Deep water fording vehicles for military use.

10. M/s Himachal Futuristic Communications Ltd.41/SIA/IL-2015
Malanour Industrial Area, Ghirongi, Bhind, Madhya Pradesh-477114.
Manufacture of Ammunition and fuze setting devices including the following:-
Safing and arming devices, fuzes, sensors and initiation devices.
Power supplies with high one time operational output.
Combustible cases for charges.
Submunitions including bomblets, minelets and terminally guided projectectiles.
Dil:67(2015)Dt24/09/2015

11. M/s Continental Defence solution Pvt. Ltd.04/SIA/IL-2015,60/SIA/IL-2015,65SIA/IL-2015
A-88 & Sp-312, Bhiwandi, Riico Industrial Area, Bhaiwadi, District Alwar Rajasthan 301019
Mounted Gun system and their ammunitions only, Ammunition &fuzes, air defence guns, loitering missile system, weapons & ammunition
Armoured Vehicle Upgrade
Dil:80(2015) DT:23/11/2015

12. M/s Shan Arms Industries Private Limited 32/SIA/IL-2015
Opp. Shanichara Railway station, Shanichara Road, Gram Piparseva, DisttMorena, Madhya Pradesh
Medium Calibres Ammunition
14.5 mm
16 mm
23 mm
30 mm
40 mm
High Calibres Ammunition
73 mm
76.2 mm
84 mm
105 mm
125 mm and above.
Dil:82(2015)DT:23/11/2015

13. M/s Pipavav Defence and offshore engineering company ltd.33/SIA/IL/2013
Horizon country wide logistic ltd., vill. Maujadongri, Block- Babina, ZillaJhanshi, Uttar Pradesh
Manufacture of Assembly and testing of all calibres of ammunition ranging from 20 mm to 203 mm for the Indian armed forces (50,000 Nos.)
Dil:90(2015)DT:02/12/2015

14. M/s Premier Explosives ltd.41/SIA/IL-2013
Katepalli Village, Atmakurmandal, Nalgonda District, Telangana
Design, Development, upgrade, refurbished and production of ready to use ammunition of 40 mm and above calibre:-
Production of Ammunition fired from artillery, tanks, helicopters, aircrafts and naval crafts (Excluding small arms ammunition) (10,00,000 Nos. annually)
Design, Development, refurbishment and upgrade of ready to use rockets and missiles.
Rocket (1,00,000 Nos. annually)
Missiles (Tactical) (1,00,000 Nos. Annually)
Design, Development, refurbishment and upgrade of ready to use mines, bombs and torpedoes for Army, Navy and Air force.
Mines all types for Army/Navy and Air Force.(1,00,000 Nos. annually)
Bombs-conventional/ Semi guided/ Smart Bombs/ Bombs with multiple war heads. (1,00,000 Nos. Annually)
Dil:30(2015)DT:12/05/2015

Ministry of Defence
25-November, 2016 16:40 IST
FDI in Defence Sector

The Government liberalized FDI policy provisions on various sector including defence sector vide. Press Note.5 (2016 Series) on 24th June, 2016. As per the current FDI policy, foreign investment upto 49% is permitted under automatic route and beyond 49% through Government approval route wherever it is likely to result in access to modern technology or for other reasons to be recorded. The FDI policy in defence sector is further subject to industrial licensing under the Industries (Development and Regulation) Act 1951. As per earlier policy notified in Nov 2015, FDI upto 49% was permitted under automatic route and FDI above 49% was permitted through Government approval route on case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country.

As technology requirement changes with time, FDI proposals of beyond 49% are examined by Ministry of Defence from technology perspective, after consultation with various stakeholders such as Armed forces, Defence Research and Development Organisation (DRDO), etc.

The foreign investment proposals beyond 49% are considered by Foreign Investment Promotion Board (FIPB) under Ministry of Finance. FIPB is an inter-ministry body having representatives of Department of Industrial Policy & Promotion, Ministry of Home Affairs and other concerned Departments. So far, since opening of defence sector for FDI, 36 FDI/ JV proposals have been approved for manufacture of various licensable defence items. After the notification of revised FDI policy in June 2016, a total of 06 proposals have been received by the FIPB.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Dr. Shashi Tharoor in Lok Sabha today.

*****

Ministry of Defence
25-November, 2016 16:37 IST
Manufacturing Defence Equipment

So far, 36 Foreign Direct Investment (FDI) / Joint Ventures proposals have been approved in defence sector for manufacture of various defence equipment, both with Indian Public and Private companies.


The State / UT-wise details of FDI / JV approvals so far are given below:


S. No. - State -No. of proposals approved

1. Haryana - 01
2.Himachal Pradesh -01
3.Karnataka - 12
4.Maharashtra -09
5.New Delhi -05
6.Tamil Nadu -03
7.Telangana -04
8.Uttar Pradesh -01


This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Innocent in Lok Sabha today.


Ministry of Defence
25-November, 2016 16:50 IST
Defence Equipment

75 Industrial Licenses have been issued in defence sector during he year 2015-16 to private defence equipment manufacturers with proposed investment of Rs.4842.22 Crore. Thirty eight applications have been received for Industrial License for manufacture of defence items from private companies during 2014-15.


The following major steps have been taken for encouraging private sector participation in defence manufacturing:


· FDI Policy in defence sector has been reviewed in June 2016, and as per the new policy, FDI up to 49% is allowed under automatic route and above 49% under Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

· Defence Products List for industrial licensing, has been notified by DIPP, wherein large number of parts / components, castings / forgings etc. have been excluded from the purview of industrial licensing. Similarly dual use items, having military as well as civilian applications (unless classified as defence item) will also not require Industrial License from defence angle.

· Initial validity of Industrial License for defence sector has been revised to fifteen years, further extendable upto eighteen years for existing as well as future licenses.

· Defence Exports Strategy has been formulated and put in public domain. The Standard Operating Procedure (SOP) for issuing NOC for export of military stores has been simplified and made online.

· Original Equipment Manufacturers (OEMs) have been allowed to change Indian Offset partners (IOP). They are also not required to indicate the details of IOPs and products at the time of signing of contracts. Services as an avenue of offset has been re-instated with certain conditions.

· Exchange Rate Variation protection has been made applicable for Indian private sector at par with Public Sector Undertakings for all categories of capital acquisitions. The preferential treatment given to Defence Public Sector Undertakings (DPSUs) in excise duty / custom duty has been discontinued.

· Basic Customs Duty of 5% to 10% has been levied on import of defence equipment both by Government and the industry, to discourage the imports and to encourage ‘Make in India’.

· The Make procedure has been revised to promote indigenous design, development and manufacture of defence equipment / platform required by the armed forces with a view to achieve self-reliance. The revised procedure also provides for enhanced Government funding and preference to MSMEs for certain category of projects.

· ‘Buy (Indian-IDDM)’ category has been introduced in DPP-2016. The category refers to procurement from Indian vendors of product that are indigenously designed and developed and manufactured with 40 per cent indigenous content. If the product is not designed and developed indigenously, it will have to have 60 per cent indigenous content. Further, in the ‘Buy (Indian)’ category the product should have 40 per cent indigenous content instead of 30 per cent.

· The Order of Preference is given as ‘Buy (Indian-IDDM)’, ‘Buy (Indian)’ and ‘Buy and Make (Indian)’ over ‘Buy & Make’ and ‘Buy (Global)’ in cases of capital acquisition.

· The Outsourcing and Vendor Development Guidelines has been promulgated to promote participation of private sector. The guidelines mandate each DPSU and Ordnance Factory Board (OFB) to have a short-term and long-term outsourcing and vendor development plan to gradually increase the outsourcing from Indian private sector.


The expenditure on purchase of defence equipment for three services in the last three years, from the Foreign and Indian vendors is as given below:

(Rs. in crore)

Total Procurement
Procurement from Foreign vendors
Procurement from Indian vendors


2013-14
93216.93
38202.66
55014.27

2014-15
77986.32
29159.69
48826.63

2015-16
76178.80
26190.46
49988.34


This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Smt Mausam Noor in Lok Sabha today.

********************

Ministry of Defence
25-November, 2016 16:48 IST
Defence Procurement


The Dhirendra Singh Committee submitted its Report to the Government in July, 2015. The Committee made 43 recommendations, of which 16 recommendations were regarding Make-in-India and 27 recommendations were regarding Defence Procurement Policy.

The Dhirendra Singh Committee recommendations have been suitably factored into the Defence Procurement Procedure (DPP) 2016, which focuses on a boost to the Make-in-India initiative of the Government, by promoting indigenous design, development and manufacturing of defence equipment, platforms and systems.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri MB Rajesh in Lok Sabha today.

 

[Hindustani78]

Ministry of Defence
16-December, 2016 14:57 IST
Review of Ordnance Factories

Performance of Ordnance Factories is being regularly reviewed by Ordnance Factory Board and the Ministry. Some of the major steps taken in this regard are as follows:


· Modernization of Ordnance Factories to keep pace with the latest technology and to maintain the production capacity in tandem with the requirement of Armed Forces. As compared to an expenditure of Rs. 2927 crore in the 11th Plan, already an expenditure of Rs. 4239 crore has been incurred during the first four year (2012-16) of the 12th Plan. In 2016-17, an expenditure of Rs. 116.67 crore is envisaged.


· To improve upon the production planning in Ordnance Factory Board (OFB), Army has started placing 5 years roll-on indents for ammunition items.


· Quality Audit Group (QAG) have been formed at 10 centres as an independent authority for giving impetus to and ensuring quality in Ordnance Factories.

· 13 Ordnance Development Centres (ODCs) with identified core technologies have been created to take up product development and improvement in core product areas.


In order to provide greater autonomy and expedite decision making process, Ministry has delegated financial powers towards procurement of Stores and Plant & Machinery to Ordnance Factory Board.


This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Kapil Moreshwar Patil in Lok Sabha today.

DM/NAMPI/RAJ

 

[Hindustani78]

http://indianexpress.com/article/in...only-usd-1-million-of-fdi-in-3-years-4584275/

By: PTI | New Delhi | Published:March 25, 2017 12:23 am

The defence sector received only USD 1 million in terms FDI equity inflow in the last three years, the Lok Sabha was informed on Friday. In a written response to a question, Subhash Bhamre, Minister of State in the Defence Ministry, said that during the last three years and the current financial year, 34 FDI proposals were received for consideration of Foreign Investment Promotion Board (FIPB).

“Out of 34, 17 have been approved. The FDI equity inflow for April 2013-December 2016 in defence sector is USD 1 million,” Bhamre said. The Minister said, 76 contracts involving Rs 1,30,664 crores have been signed with foreign vendors for capital procurement of various defence equipment including aircraft, rockets, tanks, helicopters, howitzers, missiles, simulators and ammunition.

The USA tops the list with 18 contracts, followed by 13 each by Russia and Israel, and seven by France. Responding to another question, Bhamre said, the expenditure on purchase of defence equipment through imports for three services have been 34.30 per cent in 2015-16 and 41.60 per cent until December 2016.

He said, the share of domestic-public sector production to the total annual purchase during the said years is approximately 61.1 per cent. The Minister added, the Defence Acquisition Council (DAC) accorded approval of 136 capital procurement cases estimated at Rs 4,00,714 crore during the last two financial years (2014-15 and 2015-16) and current year 2016-17 (upto January 2017), out of which 96 cases involving Rs 2,46,417 crore are under the Make in India category.

 

[Hindustani78]

Ministry of Defence
31-March, 2017 15:02 IST
FDI in Defence Sector

Foreign Direct Investment (FDI) policy in defence sector was last reviewed vide Press Note No. 5(2016 Series) on 24th June, 2016. As per the extant FDI policy, foreign investment up to 49% is permitted under the automatic route, foreign investment beyond 49% and upto 100% is permitted through Government approval, wherever it is likely to result in access to modern technology or for other reasons to be recorded. FDI in defence sector is subject to Industrial Licence under the Industries (Development & Regulation) Act, 1951. From July 2016 to January 2017, FDI to the amount of 0.61 lakhs has been received from M/s Elbit Systems Land and C41 Ltd, Israel in M/s BF Elbit Advanced Systems Pvt. Ltd.

No formal assessment of the effect of the said policy on security of the country has been carried out by the Government. However, a number of provisions are in place to ensure that the security of country is not affected by the said policy. FDI Policy is subject to industrial licence and Industrial Licenses are granted by Licensing Committee in Department of Industrial Policy and Promotion (DIPP), which takes into account the security clearance of Ministry of Home Affairs (MHA). Besides, one of the conditions of license is to adhere to the Security Manual guidelines by the Licensed Defence Companies. The Security manual prescribe detailed guidelines on physical, information, documentation, cyber and personal security aspects. The manual also prescribes for security audit of such companies by Intelligence Bureau.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Arvind Sawant and Shri Krupal Balaji Tumane in Lok Sabha today.

 

[Hindustani78]

Ministry of Defence
15-June, 2017 20:34 IST
Workshop on “Defence Procurements (Ex-Import): Important issues concerning contractual payments”

The Controller General of Defence Accounts (CGDA) organised a workshop, here today, to discuss various important issues for bringing high degree of efficiency into the process leading to payments of imported stores, for the Defence Services like fighter aircraft, advance weapon systems and platforms, etc. from foreign countries like United States, France, Israel, Russia, etc.

Speaking at the function, CGDA Ms Veena Prasad, highlighted the necessity of developing better understanding amongst all the agencies on complexities of foreign contracts and payments for evolving a seamless system for ensuring prompt payments in terms of contractual provisions and thus ensuring timely delivery of the imported stores by the foreign vendors to our Defence Forces.

Other distinguished dignitaries who expressed their views on the occasion were Financial Advisor (Defence Services) Shri Sunil Kohli, Vice Chief of the Army Staff Lt Gen Sarath Chand, Vice Chief of the Air Staff Air Marshal S B Deo, Vice Chief of the Naval Staff Vice Admiral Karambir Singh and Deputy MD, State Bank of India Shri Siddhartha Sen Gupta.

The recommendation of the workshop would be presented to the Ministry of Defence for its consideration.

The workshop was attended by senior officers from the Ministry of Defence, the Indian Army, Navy and Air Force. Officers from the CGDA Headquarters, Principal Controller of Defence Accounts (PCDA), New Delhi and State Bank of India also participated. It gave an opportunity to all participants to discuss payment related multiple aspects in order to bring efficiency in the entire system so as to ensure prompt payments and consequential delivery of the systems.

 

[Hindustani78]

Ministry of Defence
28-July, 2017 15:43 IST
FDI in Defence Production

Foreign Direct Investment (FDI) Policy has been gradually liberalized in the last two years. Since defence projects involve long gestation period and investment inflow takes time even after the projects are approved and contracts awarded, there is always a time lag before the impact of FDI is visible. In the year 2014-15, FDI of US$ 0.77 lakh and US$ 0.01 lakh has been received from France and Israel respectively. In the year 2015-16, FDI of US$ 0.95 lakh has been received from France. In the year 2016-17, FDI of US$ 0.01 lakh has been received from Israel. In the current year, till May 2017, no FDI inflow has been received.

Government vide Press Note No. 5 of 2016 Series dated 24.06.2016 has notified revised Foreign Direct Investment (FDI) policy on various sectors including Defence. According to the new policy, FDI up to 49% is under automatic route and beyond 49% is through government route wherever it is likely to result in access to modern technology or for other reasons to be recorded.

Further Defence Industry sector is subject to industrial licensing under Industries (Development & Regulation) Act 1951 and Arms Act, 1959. The licence applications are examined by Licensing Committee, an inter-ministerial body, which among other things, also takes into account security clearance by Ministry of Home Affairs (MHA) and views of Ministry of Defence (MoD).

With the abolition of FIPB, concerned Ministries have been mandated to recommend approval of the Government in respect of proposals of foreign investment in excess of 49% after taking into account security clearance of Ministry of Home Affairs (MHA) and views of Ministry of External Affairs (MEA), Reserve Bank of India (RBI), Department of Revenue (DoR) and Department of Industrial Policy and Promotion (DIPP).

Government has also put in place a Security Manual for Licensed Defence Industries. The security manual prescribes guidelines on physical, information, documentation, cyber and personnel security aspects. Security is categorised in ‘A’, ‘B’ & ‘C’ categories depending upon the products/ weapons/ equipments manufactured by them. Defence licensees have to adhere to the safety and security procedures laid down therein based on their categorisation. Security Manual also provides for Security Audit of licensed companies by Intelligence Agencies once in two years and Cyber Security Audit by CERT-IN empanelled Auditors once every year.

For the licenses granted under IDR Act, the items so produced will be primarily sold to the Ministry of Defence. These items may also be sold to other Government entities under the control of the Ministry of Home Affairs, State Governments, Public Sector Undertakings (PSUs) and other valid Defence Licensed Companies without prior approval of Department of Defence Production (DDP). However, for sale of the items to any other entity, the licensee shall take prior permission from DDP, Ministry of Defence. Further, for licenses granted under Arms Act, the items so produced shall be sold to the Central Government or the State Governments with the prior approval of the Ministry of Home Affairs.

After review of FDI policy in June, 2016, three representations have been received from defence employee federations regarding change in FDI policy in defence sector. The replies have been furnished stating that the policy has been reviewed with an aim to promote investment and technology transfer in defence manufacturing sector. This sector needs significant capital investment and infusion of technology for which foreign investment can play a critical role. The FDI in the sector could be the most trusted route to technology transfer which would help in increasing the defence production base and providing the much needed impetus to self-reliance and indigenization in defence sector.

This information was given by Minister of state for Defence Dr. Subhash Bhamre in a written reply to Shri K.R.P. Prabakaran and Shri Bheemrao B Patil in Lok Sabha today.

 

[Hindustani78]

Ministry of Finance
01-September, 2017 18:55 IST
Government disposes of six FDI proposals aggregating to foreign investment of Rs. 503.40 crore

During the period 1st July 2017 to 31st August 2017, the Department of Economic Affairs (DEA), Ministry of Finance has disposed of six (6) FDI proposals aggregating to Foreign Investment of Rs. 503.40 crore, as per details below.



1. The following four (04) proposals have been approved:

S. No
Name of the applicant
Gist of the proposal
FDI (Rs. crore)

1
AMP Solar India Pvt Ltd
Investment in Indian investing company which in turns invest in Indian operating companies.
500.00

2
Aditya Birla Capital Ltd
Issue and allotment of equity shares of M/s Aditya Birla Capital Ltd, a systemically important CIC-ND-SI registered with the RBI, to foreign equity shareholders and GDR holders in M/s Grasim Industries Limited pursuant to a composite scheme of arrangement.
Nil

3
Firstspace Development Management Pvt Ltd
Undertaking the activity of rendering Investment Advisory Services to an overseas fund manager
0.085

4
CVC Asia
Setting-up an investment advisory entity exempt from registration with SEBI
3.32


The following one (01) proposal has been withdrawn:


S. No
Name of the applicant
Gist of the proposal

1
Indus Way Emerging Markets
To accept contributions from offshore investors, accept minimum capital requirement, permit the fund to distribute the income realized on its investments to offshore investors under the automatic route.



The following one (01) proposal does not lie before DEA:


S. No.
Name of the applicant
Gist of the proposal

1
Uniquest Infra Ventures Pvt Ltd
Amendment in clauses 1, 2, 4, 5 and 6 of approval letter dated 25.3.17



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[Hindustani78]

Ministry of Defence
20-December, 2017 17:05 IST
FDI in Defence

As per current Foreign Direct Investment (FDI) policy in defence sector notified by Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry vide Press Note No.5 (2016 Series), FDI upto 49% is allowed under automatic route and beyond 49% through Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded. Further, FDI in defence is subject to industrial licence under Industries (Development & Regulation) Act, 1951 and manufacturing of Small Arms and Ammunition under the Arms Act, 1959.

In so far as joint venture in the defence sector with more than 74 per cent FDI is concerned, no such proposal has been approved by the Government.

This information was given by Raksha Rajya Mantri Dr. Subhash Bhamre in a written reply to Shri AP Jithender Reddy in Lok Sabha today.

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