Updated February 9th, 2024 at 18:21 IST
Companies in defence sector get Rs 5,077 crore foreign direct investment
The Ministry of Defence disclosed that companies operating in the defence sector have reported Foreign Direct Investment (FDI) amounting to Rs 5,077 crore.
The Ministry of Defence disclosed that companies operating in the defence sector have reported Foreign Direct Investment (FDI) amounting to Rs 5,077 crore. Minister of State for Defence, Ajay Bhatt, provided this data during a session in Lok Sabha on Friday.
According to Bhatt, the defence industry sector was opened for private sector participation in May 2001. He further elaborated that the FDI limit in the defence sector was augmented in 2020, allowing up to 74 per cent FDI through the automatic route for companies seeking new defence industrial licenses. Additionally, the government route permits up to 100 per cent FDI in cases where it facilitates access to modern technology.
Highlighting the significance of FDI in the defence sector, Bhatt stated, "So far, Rs 5,077 crores worth of FDI has been reported by companies operating in the defence sector."
Furthermore, the minister stressed on the government's efforts to foster co-development and co-production of niche defence technologies with foreign original equipment manufacturers as a means to encourage FDI in the sector.
In response to a separate query, Bhatt mentioned that the defence ministry has recently inked a contract with Mazagon Dock Shipbuilders Ltd (MDL) on December 20. The contract entails the procurement of six next-generation offshore patrol vessels for the Indian Coast Guard (ICG) at a total cost of Rs 1,614 crore.
Published February 9th, 2024 at 18:21 IST