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SOURCE: PTI

Foreign Direct Investment (FDI) worth Rs 5077 crore has been reported by companies operating in the defence sector, the defence ministry said in Lok Sabha on Friday. The data was provided by Minister of State for Defence Ajay Bhatt while replying to a question. The defence industry sector was opened up in May 2001 for private sector participation, he said.

“The FDI limit in the defence sector was enhanced in 2020 up to 74 per cent through the automatic route for companies seeking new defence industrial licence and up to 100 per cent by the government route wherever it is likely to result in access to modern technology,” Bhatt said.

“So far, Rs 5077 crores worth of FDI has been reported by companies operating in the defence sector,” he added.

The minister said the government also promotes co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector.

To a separate question, he said the defence ministry has signed a contract with the Mazagon Dock Shipbuilders Ltd (MDL) on December 20 for procurement of six next generation offshore patrol vessels for Indian Coast Guard (ICG) at a total cost of Rs 1614 crore.