Monday, May 17, 2010

Overcome obsolescence

Govt for 74 pc FDI in defence to overcome obsolescence

New Delhi, May 17 (PTI)

With its weaponry facing rapid obsoletion, the government today proposed to raise FDI in defence production to 74 per cent, saying it would help ensure technology transfer and funds to effectively replace imports, estimated at over USD 8 billion.

Mooting a discussion for raising FDI from 26 per cent in defence production to the same level as telecoms sector, the Industry Ministry also sought to allay security concerns and impact on domestic players, saying effective checks could be put to tackle any "suspect" company.

While, leading industry chamber CII, stuck to its stand of allowing 49 per cent FDI in the defence sector, no reaction could be obtained from FICCI.

By: Saud Bin Muammar

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