Hyderabad, Jul 26 (UNI) Revealing that the Centre would soon come out with a new Defence Procurement Procedure (DPP), Minister of State for Defence M M Pallam Raju today said the UPA government was seriously considering the industry demand for enhancing the foreign direct investment(FDI) limit from the present 26 per cent.
''The government, which has opened the defence industry for private sector participation up to 100 per cent with FDI up to 26 per cent, subject to licensing, is considering to go one step ahead to increase the FDI limit further for infusing foreign technology in critical areas,'' he told reporters on the sidelines of ''Defence Industry Partnership meet'', organised by the Confederation of Indian Industry.
The DPP would facilitate more transparency and more private sector participation in meeting India's defence needs to the tune of US Dollar 45 billion in the next five years, he informed.
Earlier, addressing the meet, the Minister pointed out that there had been a paradigm shift in the role of the private sector in the field of indigenisation -- from the role of supplier of raw materials and components and sub-systems to partners in manufacture of complete advanced equipment/system.
With the country importing over 70 per cent of defence hardware, the Government was keen on nurturing the private sector, which had inbuilt advantages like reservoir of management, scientific and technological skills coupled with ability to raise resources, Mr Raju said.
He noted with satisfaction that private industries were coming forward to co-develop and co-produce in critical areas like Radar Weapon systems and Bridging Equipment. Many countries, including Israel, France, Britain and Germany, were keen to undertake co-development and co-production in many defence-related areas.
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