New Delhi, September 18
The Centre has enhanced the FDI restrict for the defence sector by permitting as much as 74 per cent capital by way of computerized route.
Now, authorities approval can be required for in-take of overseas capital past 74 per cent with a stipulation that the overseas capital “is likely to result in access to modern technology or for other reasons to be recorded”.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the choice will take impact from the date of FEMA (Foreign Exchange Management Act) notification.
“FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licenses,” DPIIT mentioned in a press be aware.
“Infusion of fresh foreign investment up to 49 per cent, in a company not seeking an industrial license or which already has government approval for FDI in Defence, shall require mandatory submission of a declaration with the Ministry of Defence in case change in equity or shareholding pattern or transfer of stake by existing investor to a new foreign investor for FDI up to 49 per cent within 30 days of such change. Proposals for raising FDI beyond 49 per cent from such companies will require government approval,” the press launch added.
The improvement assumes significance because the Centre is attempting to spice up home defence sector manufacturing.
At current, India is taken into account to be one of many largest weapons importers on the planet. IANS