New Delhi: In a big-bang reform measure, the Union government has decided to raise the limit for foreign direct investment (FDI) for defense manufacturing from 49 to 74 percent under the automatic route.
Speaking to the media here, Finance Minister Nirmala Sitharaman on Saturday said that the time-bound defense 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, the 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 defense production, the government will notify a list of weapons and platforms for a ban on imports with year-wise timelines. The indigenization of imported spares will also be taken up.
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 defense import bill.
The government has also decided to corporatize the 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.
SOURCE–IANS
