Zero Receipts: No Takers For FDI At 49%

By Arming India Correspondent

NEW DELHI: There's Zero receipt of Foreign Direct Investment (FDI) in Defense manufacturing post the Modi Government raising the limit from 26 to 49 per cent in July 2014, figures presented in Parliament reveal. This suggests that the move has failed to enthuse foreign investors, who were looking for the comfort of majority stakes.

Most revealing is the aggregate figure of FDI receipts in Defense from April 2000 to September 2014: $ 4.94 million. This paltry figure has been static for many years now.

So far, 33 FDI proposals have been approved after the opening up of the Defense Industry Sector for Indian private sector participation.

India's Foreign Investment Promotion Board (FIPB) got six proposals for FDI in Defense since June 2014, Minister of State for Defense Rao Inderjit Singh told Parliament on Dec. 16, 2014.

The Indian companies to get the proposals: - Solar Industries India, Nagpur for FII and NRI Investment of 1.18% - Hats Off Helicopters Training of Bengaluru for post-facto approval for the issue of 5,84,205 equity shares of Rs.10/- each to CAE Inc., Canada - Ideaforge Technology for 17.04% of NRI investment - Punj Lloyd for foreign shareholder and NRI IPO allottees repatriable investment of 22.79% plus NRI 2.52% plus FII 7.68% - Aequs (P) Limited from Aequs Manufacturing Investment (P) of Mauritius for hiking to 49% from existing 17.29% - Fokker Elmo Sasmos Interconnection Systems for 49% FDI from Fokker Elmo BV of Netherlands.

More Pinaka Rockets For Army

The Government has sanctioned a five-fold capacity expansion for production of Pinaka rockets from the existing 1,000 rockets per year to 5,000.

The capacity expansion will be funded by an investment of Rs 1,388.80 crore (Rs.13.88 billion/$200 million). The expansion in capacity has been driven by a requirement for new variants of the Pinaka rocket, which are still under development.

Bhubaneswar Gets Coast Guard Dornier Squadron

Indian Coast Guard Director General Vice Admiral Anurag G Thapliyal on Dec. 15, 2014 commissioned the Bhubaneshwar Air Enclave and the 743 Dornier Squadron of the force at the international airport in the capital city of Odisha state on India's East coast.

The two units will operate under the operational and administrative control of the Commander, Coast Guard Region (North East) through the Commander, Coast Guard District No 7 (Odisha).

The Coast Guard Air Enclave Bhubaneswar was formerly activated on Apr. 10, 2013 and since then it has been engaged in undertaking air surveillance in the northern Bay of Bengal over 0.15 million sqkm of India's Exclusive Economic Zone.

The 743 Squadron (CG) will be operating with two Dornier aircraft.


 




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