Defence Procurement: Not A Level Playing Field for Private Sector, PSEs Still Rule


The Indian government opened defence production to the private sector in May 2001 as an outcome of the recommendations of the post-Kargil Review Committee. Accordingly, issuance of Industrial Licenses to the private sector began in mid-2002, thereby opening the doors for Indian private sector companies, with a track record in manufacturing to prove their mettle against the well-entrenched monolith- Defence Public SectorUndertakings (DPSU). It allowed 100 per cent private equity with 26 per cent Foreign Direct Investment (FDI). It was a major policy change. Subsequently, the Department of Industrial Policy and Promotion (DIPP) issued detailed guidelines for the issuance of licence for the production of arms and ammunition. Currently, foreign investment up to 49 per cent is permitted under the automatic route, foreign investment beyond that up to 100 is permitted through government approval.

The Department of Industrial Policy and Promotion (DIPP), in consultation with Ministry of Defence, has so far issued several letters of intent for the manufacturing of various types of defence hardware which include armoured and combat vehicles, radars, electronic warfare equipment Read more

You may also read!

Ministry of Defence to organise series of webinars in run up to DefExpo 2020

Ministry of Defence (MoD) is organising a series of web seminars (webinars) from December 10, 2019 (1500 Hrs to


Air India plane grounded due to technical reasons, returns to Raipur

Many Air India passengers were stranded at Raipur airport on Tuesday after their plane, that took off for  Visakhapatnam,


Surprised if Boeing’s 737 Max re-certified this month: Fmr FAA scientist

Alan Diehl, aviation safety consultant and former investigator at the National Transportation Safety Board, and Carter Copeland, founding partner


Mobile Sliding Menu