Tuesday, December 1, 2020
Home Business finance Union Government Raises FDI Limit From 49% to 74% for Defence Manufacturing

Union Government Raises FDI Limit From 49% to 74% for Defence Manufacturing

The government will also set up a project management unit to support contract management

In a big-bang reform measure, according to Finance News, the Union government has decided to raise the limit for foreign direct investment (FDI) for defence manufacturing from 49 to 74 per cent under the automatic route.

Speaking to the media here, Finance Minister Nirmala Sitharaman on Saturday said that time-bound defence procurement process and faster decision-making will take place under the new policy.

The government will set up a project management unit to support contract management. Further, realistic setting of general staff qualitative requirements of weapons or platforms will be taken up.

Under the new regime, the government will also overhaul the trial and testing procedures.

In a bid to enhance self-reliance in defence production, the government will notify a list of weapons and platforms for a ban on import with year-wise timelines. Indigenisation of imported spares will also be taken up.

Government decision for FDI
The government will notify a list of weapons and platforms for a ban on import with year-wise timelines. Pixabay

Read More: The Tale Of A Bicycle Thief That left Netizens in Tears

Further, the government will take up separate budget provisioning for domestic capital procurement. All these measures, according to the government will help reduce India’s huge defence import bill.

The government has also decided to corporatize Ordnance Factory Board to improve autonomy, accountability and efficiency in ordnance supplies.

The mega reform announcements are part of the Rs 20 lakh-crore economic package announced by Prime Minister Narendra Modi on Tuesday. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

Fast-Moving Carbon Monoxide Gas Flowing Away From Star

A unique stage of planetary system evolution has been imaged by astronomers, showing fast-moving carbon monoxide gas flowing away from a star system over...

Fear in Indian Corporates About Rise in Fraud Cases

The uncertainty and business disruption brought about by the pandemic has contributed to fears amongst corporate India about the rise in fraud cases in...

2020 Is The Year of Internal Discovery For India, says Modi

The year just ending may be called by some as one of the external disruptions due to the coronavirus pandemic but for India, it...

Sweden To Strengthen Ties With India in Science & Technology

Sweden aims to strengthen its ties with India in the area of science and technology as the two countries are celebrating the Nobel Memorial...

Museum For Preserving Sacred Trees of Sikhism

Punjab Governor and Chandigarh Administrator V.P. Singh Badnore on Monday virtually inaugurated the first-of-its-kind Museum of Trees -- a unique environmental project here for...

Konark Festival And Sand Art Festival To Begin From Dec 1

The twin events of the Konark Festival of classical dance performances with the grand Sun Temple in the backdrop and the International Sand Art...

UN Health Agency: Physical Activities Can Save Up To 5 Million Lives A Year

The World Health Organization is urging people to get moving and keep moving for better health.  The U.N. health agency says physical activity can...

WHO: Covid19 Threatens To Reverse Important Gains Made To Control Malaria

On World Malaria Day, the World Health Organization is calling on countries to step up the fight against malaria, saying the coronavirus pandemic threatens...

Recent Comments