33 defence projects cleared, govt expects billion dollar investments to pour in

New Delhi: Government has cleared 33 pendingdefence projects, including those of Reliance Aerospace,Bharat Forge, Mahindra Telephonic Integrated Systems and TataAdvanced Materials, a move that is expected to boost advanced manufacturing and attract huge investments.

The Licensing Committee, chaired by Secretary in theDepartment of Industrial Policy and Promotion (DIPP), hascleared these long pending applications last week and grantedindustrial licences to them, an official statement said.

The 33 projects include 14 cases whose applicants havebeen informed that licences were not required any more as a vast number of defence items have been delicensed, it added.

"It has been possible to approve these cases as aconsequence of the simplification of FDI policy," the releasesaid, adding that the development would give a big boost to'Make In India' campaign which seeks to make the country a hubfor global manufacturing.

 33 defence projects cleared, govt expects billion dollar investments to pour in

Reuters image

The Narendra Modi-led government has liberalised the FDIpolicy in the defence sector by hiking the cap from 26 per cent to 49 per cent. India imports up to 70 per cent of its military hardware.

"It is expected that clearance of these 33 applicationsand the deregulation of defence product list excluding a large number of components from purview of industrial licensing willprovide a major impetus to advanced manufacturing in defencesector," the statement said.

According to sources, the decision is expected to resultin investments of billions of dollars.

The Licensing Committee also discussed the possibility ofremoval of stipulation of annual capacity in the industrial licence as also to permit sale of licensed items to otherentities under the control of Home Ministry, stategovernments, PSUs and other defence licensed companies withoutrequiring approval of the Department of Defence Production.

"It was agreed that the above stipulation would berelaxed subject to submission of bi-annual returns by theunit. The DIPP would be shortly notifying the above decisionby issue of a Press Note," the release said.

PTI

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Updated Date: Oct 08, 2014 10:48:46 IST