Government of India has so far approved 36 Foreign Direct Investment (FDI) / Joint Ventures proposals in defence sector for manufacturing 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 Defence Minister Manohar Parrikar in a written reply in Rajya Sabha on Tuesday (August 9).
India opened up the defence sector allowing foreign companies to own as much as 100 per cent equity in the local defence sector through the government approval route in cases where it is likely to result in access to modern technology.
The new rules could mean that Indian companies that were rushing to tie up with OEMs in expectation of future business may find that their partners choose to enter the market on their own.
Under the previous rules, foreign OEMs (original equipment manufacturers) were required to form joint ventures with domestic firms if they wanted to establish a manufacturing base in India. With the amendment, an OEM can independently plan and implement operations in India.
This would save the time spent on lengthy negotiations with Indian companies.
By Belal Khan
