New Delhi: A total of 42 FDI defence proposals/Joint Ventures (JVs) have been approved for manufacture of various defence equipments, both in public and private sector, Minister of State for Defence Shripad Naik said in the Lok Sabha on Wednesday. Government policies and initiatives encourage all foreign companies including Russian companies to set up their manufacturing facilities in the country through partnerships/joint ventures with Indian companies, Naik said.
42 FDI defence proposals include 3 JVs with Russia
The 42 FDI defence proposals include three JVs with Russia M/s Multirole Transport Aircraft Ltd, M/s Indo-Russian Helicopters Ltd and M/s Indo Russian Rifles Pvt Ltd.
Recently, an Inter-Governmental Agreement (IGA) on Joint manufacturing of spares, components, aggregates and other material related to Russian/ Soviet-origin arms and defence equipment was signed during the 20th India-Russia Bilateral Summit held at Vladivostok on January 4 earlier this year. The objective of the IGA is to enhance the after sales support of Russian origin equipment currently in service in the Indian Armed Forces through partnership of Russian OEMs with the Indian industry under the framework of Make in India initiative. The IGA stipulates assurance of orders for minimum five years to manufacturing facilities created under the agreement subject to reduction in cost, reduction in time frame of supplies and ensuring progressive indigenisation of products in India.