The defence sector has received just Rs 61,000 of Foreign Direct Investment between July 2016 and January 2017, post revision of FDI policy last year, the government informed the Lok Sabha.
In a written reply, Mos in the defence ministry Subhash Bhamre said the FDI policy was last reviewed on June 24, 2016 and as per the revised policy, foreign investment up to 49 per cent is permitted under the automatic route.
“Foreign investment beyond 49 per cent and up to 100 per cent is permitted through government approval, wherever it is likely to result in access to modern technology.
“FDI in defence sector is subject to industrial licence under the Industries (Development & Regulation) Act, 1951. From July 2016 to January 2017, FDI to the amount of Rs 0.61 lakh (61,000) has been received from M/s Elbit Systems Land and C41 Ltd, Israel in M/s BF Elbit Advanced Systems Pvt Ltd,” Bhamre said.
He added around 36 FDI proposals or joint ventures have been approved in defence sector for manufacture of various defence equipment.
In response to another question, Bhamre said, one of the reasons for delay in Medium Altitude Long Endurance (MALE) Unmanned Ariel Vehicles (UAV) Rustom II was export denial of critical items and delay in procurement of imported payloads.