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Swedish company becomes first to bag 100% FDI in defence project; to make shoulder-fired rockets in Haryana: Report
According to the report, the company will set up a new facility in the country to manufacture shoulder-fired rockets.
Sweden's Saab has become the first foreign company to bag 100% FDI in India's defence projects, The Economic Times has reported.
According to the report, Saab will set up a new facility in the country to manufacture shoulder-fired rockets.
Saab's proposal, valued at under ₹500 crore, was cleared in October, the report claimed, citing sources. Hindustan Times could not independently verify the report.
At present, India allows only 74% FDI in the defence sector under the automatic route. Beyond that, clearance can be obtained on a case-by-case basis. However, the clearance rules were relaxed in 2015, still, no foreign firm was able to get permission for 100% FDI in defence.
According to the Daily, Saab has set up a new company – Saab FFV India – to make the latest generation of the Cal-Gustaf M4 system. This will be the first time Saab will manufacture shoulder-fired rockets outside Sweden.
The manufacturing facility is likely to be placed in Haryana.
The shoulder-fired rockets are already in extensive use by the Indian armed forces. According to the report, they can be even exported once local production begins.
"We are proud to be the first global defence company to be approved by the Indian government for 100% foreign direct investment for our new Carl-Gustaf manufacturing facility in India," Mats Palmberg, chairman and managing director, Saab India, was quoted as saying by the newspaper.
He added: "This is another step in Saab's commitment to 'Make in India,' and we look forward to continuing our collaboration with our Indian partners and to supporting the Indian armed forces with the production of Carl-Gustaf in India."
Earlier in 2016, a French firm, DCNS, became the first foreign company to seek approval for 100% FDI to set up an Indian subsidiary to develop advanced systems that would give submarines more underwater endurance.
The company, however, could not get the required permissions, according to the report.
