Skip to main content

Govt set to allow over 49% FDI in defence

By
The government has got down to formalising norms for allowing over 49% foreign direct investment in defence production after French company DCNS proposed to set up a wholly owned Indian arm to develop advanced systems for submarines.
The department of defence has held a few round of consultations with other ministries with other ministries and also discussed the issue with stakeholders, said sources. There is a thinking within the government that it would be best not to have a fixed set of norms, and instead take a view on the merits of an individual case.
While the govern ment allowed 100% FDI in defence manufacturing, it was decided that overseas investment up to 49% would be allowed via the automatic route and a higher stake would be permitted on a case-to-case basis if a state-of-the-art product was being brought in with access to technology .
“So far, there were no guidelines on how to deal with cases where majority foreign ownership is proposed. We are trying to put in place a standard operating procedure,“ an officer said. The move comes ahead of next week's meeting of the Fore ign Investment Promotion Board, where DCNS's proposal is listed.The proposal can be deferred if there is no consensus on the guidelines or need to have a stringent set of rules that reduce flexibility.
DCNS is looking to bring Air Independent Propulsion (AIP) systems into the country , which are seen to provide more underwater endurance to conventional submarines. Earlier, news reports had sa id that the French firm plans to develop AIP equipment in partnership with Indian companies.
The Narendra Modi government is keen to rope in the private players and overseas investors in the hitherto closed sector. Even the defence ministry , which was earlier reluctant to allow private players and preferred to import equipment, often involving middlemen, is now amenable to the change.
Despite the massive interest in recent months, between 2000 and 2015, FDI inflow in the sector was estimated at $5 million (Rs 25 crore), just higher than that in the coir industry , data with the department of industrial policy and promotion showed. This indicated that projects haven't taken off and defence orders have not been forthcoming.
Times of India New Delhi,23 April 2016

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

By
  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...
1 comment
Read more

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

By
  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025
Post a Comment
Read more