India Defence News: India has so far approved more than 40 joint ventures and foreign direct investment proposals with foreign companies to manufacture defence equipment in the country. These joint ventures include both public and private sector Indian defence manufacturer. Government policies and initiatives encourage all foreign companies including Russian companies to set up their manufacturing facilities in the country through partnerships and joint ventures with Indian companies, Shripad Naik, minister of state for defence, informed the Lok Sabha.
“So far, 42 FDI proposals and Joint Ventures (JVs) have been approved for manufacture of various defence equipments, both in public and private sector which include 3 joint ventures with Russia,” said Shripad Naik.
These are: Multirole Transport Aircraft Ltd, Indo-Russian Helicopters Ltd and Indo Russian Rifles Pvt Ltd.
Early this year, India and Russia have signed an Inter Governmental Agreement (IGA) on Joint manufacturing of Spares, Components, Aggregates and other material related to manufacture of arms and ammunition of Russian, Soviet origin was signed during the 20th India-Russia Bilateral Summit held at Vladivostok.
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The objective of the IGA is to enhance the after sales support of Russian origin equipment currently in service in Indian Armed Forces in partnership with Russian original equipment manufacturers. It will also involve the Indian defence manufacturers under Prime Minister Narendra Modi’s flagship Make in India scheme.
The IGA stipulates assurance of orders for minimum five years to manufacturing facilities created under the agreement subject to reduction in cost, reduction in time frame of supplies and ensuring progressive indigenisation of products in India.
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Defence Corridors to boost defence production
The Modi government has already approved setting up of one defence corridor each in Uttar Pradesh and Tamil Nadu to promote indigenous defence production.
Private and public sector defence manufacturers have already committed investment of over Rs 3,700 crore during the meeting of Uttar Pradesh Defence Industrial Corridor held in Aligarh in August 2018.
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Similarly, during the launch of Tamil Nadu Defence Industrial Corridor held at Tiruchirappalli in January 2019, an investment of over Rs 3100 crore was announced by public sector defence undertakings, ordnance factory board and private Indian defence manufacturers for Tamil Nadu Defence corridor.