During the last three financial year and current year 99 contracts involving Rs.1,07,580.47 Crore have been signed with Indian vendors and 61 contracts involving Rs.1,23,142.30 Crore have been signed with foreign vendors for capital procurement of defence equipment for Armed Forces, Defence Minister Arun Jaitley informed the Lok Sabha on Friday.
The contracts include high value assets such as Aircraft, Helicopters, Rockets, Artillery gen, Missiles, Simulators and Ammunition.
“Government is taking steps to promote indigenization and self-reliance in the defence sector. These measures include according priority and preference to procurement from Indian vendors and liberalization of the licensing regime,” he said.
He said the Modi Government has also promulgated the policy on Strategic Partnership in the Defence Sector intended to institutionalize a transparent and objective mechanism to encourage broader participation of the private sector in manufacture of major defence platforms and equipment.
The Defence Ministry is also undertaking the internal audit which is conducted by Defence Accounts Department while performing function of payment and accounting of all Defence expenditure.
He said a Defence Exports Strategy outlining the various steps to be taken, has been formulated and put up in public domain along with List of military stores to make the process transparent & clear.
Talking about the Foreign Direct Investment (FDI) Policy he said under this a Foreign Investment Cap is allowed through automatic route upto 49% and Government route beyond 49% wherever it is likely to result in access to modern technology or for other reasons to be recorded.
Issues related to level-playing field between Indian vs. Foreign Manufacturers and public sector vs private sector have also been addressed. Exchange Rate Variation protection has been made applicable for Indian Private sector at par with Public Sector Undertakings for all categories of capital acquisitions. The preferential treatment given to Defence Public Sector Undertakings in excise duty/ custom duty has been discontinued.