The Defence Industry sector is open up to 100% for Indian Private sector

[RPK]

The Defence Industry sector is open up to 100% for Indian Private sector participation with FDI permissible upto 26%, both subject to licensing.

The Government promotes production of equipment/components/ spares under transfer of technology from foreign suppliers through acquisitions categorized as "Buy & Make" and "Buy & Make (Indian)" under Defence Procurement Procedure (DPP).

The DPSUs and OFB have developed their capabilities by way of absorption of technologies through TOT route over the times and thereby are catering mainly to the procurement by the services from domestic sources. Private sector is enhancing its capabilities. However, the rate of change in technologies in the defence sector is limiting procurement from domestic sources.

The Defence Production Policy-2011 endeavors to build up a robust indigenous defence industrial base by, proactively encouraging larger involvement of the Indian private sector in design, development and manufacture of defence equipment.

The Defence industry sector is capital intensive and the investments in this sector are driven by the commercial interests. Foreign technology infusion is being encouraged by permitting FDI upto 26%, subject to licensing, in the defence industry sector. Greater allocation of resources in R&D by the DPSUs and DRDO is also being encouraged.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shrimati Sumitra Mahajan and others in Lok Sabha today.

PK/NN
(Release ID :75578)

 

[angeldemon_007]

Who cares ????
Unless any project is awarded to them, nothing has changed.

 

[nikhilarya]

in the era of nuclear hangover, defence equipment are just for sales. new arms race is like who sell more of it, its a global market.
.........
on topic
i would like if tata or mahindra (being 2 best in private companies) like SAAB

 

[DacterSaab]

TATA, Mahindra, L&T all have already invested in Defense sector Also unless I'm very mistaken so have Godrej group I've heard reports that they provided some equipment free of cost on president Kalams request. Although I'm unsure if the Ambanis are investing.

 

[HitesH]

i dont know why people here blame govt so much for letting private sector join govt projects.

public-private joint venture has been going on for a long time, its just not many people are aware of, mainly due to security reasons.

being a part of IT sector, i can tell there is a lot of co-operation going on behind the scene between them..........and its good.