DIPP approved 33 defence proposals
DIPP approved 33 defence proposals, of which 19 are related to the FDI to boost the manufacturing in defence sector.
The Department of Industrial Policy and Promotion (DIPP) in first week of October 2014 approved 33 defence proposals. Of these 33 proposals, 19 are related to the foreign direct investment that aims to boost the manufacturing in defence sector.
These proposals were approved by the Licensing Committee chaired by Secretary, Department of Industrial Policy & Promotion.
Apart from this, a release of Union Minister of Commerce said that the decision will give a major impetus to Make In India programme that was initiated by Union Government to boost domestic manufacturing.
Nineteen proposals who’s Industrial License for defence production have been granted include Reliance Aerospace Technologies Limited, Bharat Forge Limited, Mahindra Telephonic Integrated Systems Limited, Punj Lloyd Industries Limited, Mahindra Aero Structure Pvt Limited, Tata Advanced Materials Limited. Apart from this, 14 applicants didn’t required licenses as a vast number of defence items have been de-licensed.
This decision was made after the FDI policy vide Press Note 7 was simplified and the FDI cap was in defence was raised from 26 to 49 percent. It also permitted portfolio investments up to 24 percent of the total equity of the investee / joint venture Company under automatic route and doing away with requirement of 51% equity ownership by a single Indian investor/company.