Rs 5077 crore FDI reported by companies operating in defence sector: Govt

New Delhi, International Direct Funding (FDI) value Rs 5077 crore has been reported by firms working within the defence sector, the defence ministry mentioned in Lok Sabha on Friday. The information was supplied by Minister of State for Defence Ajay Bhatt whereas replying to a query.

The defence business sector was opened up in Could 2001 for personal sector participation, he mentioned.

“The FDI restrict within the defence sector was enhanced in 2020 as much as 74 per cent by the automated route for firms looking for new defence industrial licence and as much as 100 per cent by the federal government route wherever it’s prone to lead to entry to trendy expertise,” Bhatt mentioned. “To date, Rs 5077 crores value of FDI has been reported by firms working within the defence sector,” he added.

The minister mentioned the federal government additionally promotes co-development and co-production of area of interest defence applied sciences with overseas unique gear producers to encourage FDI within the defence sector.

To a separate query, he mentioned the defence ministry has signed a contract with the Mazagon Dock Shipbuilders Ltd (MDL) on December 20 for procurement of six subsequent technology offshore patrol vessels for Indian Coast Guard (ICG) at a complete value of Rs 1614 crore.

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