Latest Details of FDI in India’s Defence Sector (Upto May 2016)

Four proposals for Rs 7500 crore have been received by the government in the defence sector upto May 2016.

Details of these proposals are:

Year 2016: 04 proposals:

Sl. NoName of the companyCountryAction taken
1. M/s Tata Sikorsky Aerospace LimitedSingaporeApproved
2.M/s Indian Rotorcraft LimitedIndiaDeferred
3.M/s DCNSFranceDeferred
4.M/s Quantum Technologies LLC.United KingdomApproved

The total Foreign Direct Investment (FDI) made in the country during each of the last three years and the current year are as under:-

(In US$ million)

4.2016-17 (Upto May 2016)7,456

List of FDI proposals received in Foreign Investment Promotion Board (FIPB) under defence sector during the last three years and the current year are as under:-

Year 2013: 08 proposals:

Sl. No.Name of the companyCountryAction taken
1.M/s Mahindra & Mahindra LimitedUSAApproved
2.M/s Bharat Electronics LimitedFranceApproved
3.M/s Amertec Systems Pvt. Ltd.IsraelApproved
4.M/s Pipavav Defence and Offshore Engineering Company Ltd.MauritiusApproved
5.M/s NSE IndustriesFranceApproved
6.M/s Maini Precision Products Pvt. Ltd.MauritiusApproved
7.M/s Indian Rotorcraft LimitedNetherlandsApproved
8.M/s BF Elbit Advanced Systems Pvt. Ltd.NRIs FIIApproved

Year 2014:  10 proposals:

Sl. No.Name of the companyCountryAction taken
1.M/s Sasmos Het Technologies Ltd., BangaloreNetherlandsApproved
2.M/s Quest Global Manufacturing Private Limited, Bengaluru.
3.M/s Samtel Thales Avionics Limited
4.M/s Verdant Telemetry & Antenna Systems Pvt. Ltd.
FII / NRIApproved
5.M/s Maini Precision Products Private Limited.
6.M/s Bharti Shipyard Ltd.
FII / NRIApproved
7.M/s Solar Industries India Limited, Nagpur.
FII / NRIApproved
8.M/s Idea Forge Technology Pvt. Ltd.
FII / NRIApproved
9.M/s Punj Lloyd Limited.
10.M/s Thales India Pvt. Ltd.
Hong KongApproved

Year 2015:  10 proposals:

Sl. No.Name of the companyCountryAction taken
1.M/s Dynamatic Technologies Ltd.NRI / FIIApproved
2.M/s Mahindra Telephonic Integrated Systems Limited.USAApproved
3.M/s Indian Rotorcraft Limited.
4.M/s BF Elbit Advanced Systems Pvt. Ltd.
5.M/s Safran Engineering Services India Pvt. Ltd.

6.M/s Fokker Elino B.V. Netherlands
NetherlandsAutomatic Route
7.M/s Menon Bearings Limited
Not mentionedRejected
8.M/s Sikorsky Aircraft Corporation
United StatesDoes not lie
9.M/s Verint India Systems Pvt. Ltd.United Kingdoms
10.M/s Rolta Meprolight Private Limited

Year 2016:  04 proposals:

Sl. No.Name of the companyCountry Action taken
1.M/s Tata Sikorsky Aerospace Limited
2.M/s Indian Rotorcraft Limited
3.M/s DCNSFrance
4.M/s Quantum Technologies LLC.

United KingdomApproved

It may be noted that the Government has on June 24, 2016 reviewed the FDI Policy in Defence Sector. Foreign Investment up to 49% is allowed through automatic route and above 49% under Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded. The foreign investment in defence sector is further subject to industrial license under the Industries (Development & Regulation) Act, 1951.

The amendments made in the policy could be the most trusted route to technology transfer which would help in increasing the defence production base and providing the much needed impetus to self-reliance and indigenization in defence sector.

Foreign investment above 49% is permitted in cases wherever the proposal is likely to result in access to modern technology or for other reasons to be recorded. Such proposals are considered by Foreign Investment Promotion Board (FIPB) based on the security clearance of Ministry of Home Affairs (MHA) and comments of Ministry of Defence. Foreign investment in Defence sector is subject to the grant of Industrial License under the Industries (Development and Regulation) Act 1951, by Licensing Committee, an inter-ministerial body, which among other things, also takes into account security clearance by Ministry of Home Affairs (MHA) and views of Ministry of Defence (MoD).

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