PRIVATE SECTOR PARTICIPATION
IN DEFENCE SECTOR
LOK SABHA
The Defence Industry
Sector was opened in May 2001 for participation by Indian Private
Sector upto 100 % equity, with Foreign Direct Investment, component
of it being permissible upto 26 %, both being subject to licensing
permission. This includes all types of defence equipment. Detailed
guidelines were issued by the Department of Industrial Policy
& Promotion (DIPP) after consultation with the Ministry of
Defence and Industry Associations, for consideration of application
for grant of license in January 2002.
Till date, 10 applications
have been received through DIPP for manufacture of various types
of defence equipment, out of which recommendation on 6 applications
have been conveyed to DIPP.
This information
was given by the Defence Minister Shri George Fernandes in a written
reply to Shri Ananta Nayak in Lok Sabha today.
