Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

Govt opens up more defense production to private firms

  1. Context: Around 25% of the defence PSU (public sector undertaking) turnover can be off-loaded to the private sector
  2. Govt has identified 25 projects to be throw open to the private industry
  3. Earlier: the ministry has already delicensed 60-70% of the production
  4. Revised offset clause: will now be applied to contracts of more than Rs.2,000 crore instead of current Rs.300 crore
  5. Earlier offset clause: any foreign arms manufacturer securing an order worth more than Rs.300 crore from India has to source components worth 30% of the value of the order from India
  6. Benefit: removing a hurdle to foreign firms eyeing the Indian market

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