Tata Motors gets direct industrial licence to manufacture defence-related items. |
The government has granted a direct industrial licence to Tata Motors to manufacture a host of defence-related items, including light armoured multi-role vehicles, special attack surveillance vehicles, high mobility vehicles and bullet-proof cars, utility-vehicles and troop carriers. |
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The licence was an assurance that the government would either procure these vehicles, or allow Tata Motors to export them to friendly countries, sources told Business Standard. |
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When contacted, Tata Motors executives declined to comment. This is likely to be the biggest-ever licence granted to a private company in the defence sector since the government allowed private sector participation in defence production, including foreign direct investment in early 2002. |
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The government largely procures defence equipment from overseas countries, especially Russia and Israel, and various state-owned units. |
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At present, only a few private companies like Ashok Leyland and Mahindra & Mahindra supply equipment directly to the Army. |
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The Tata group had earlier announced plans to procure defence-related business worth Rs 2,000 crore by 2008. |
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The group is already the single largest private sector player in the defence sector with revenues of over Rs 500 crore. |
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Various Tata group companies have also geared up to generate business from the estimated Rs 10,000 crore defence contract market. |
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These are Tata Power, Nelco, Tata Consultancy Services, Tata BP Solar, Tata Infotech, Tata Advanced Materials and Voltas. |
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The companies provide various solutions, including transportation solutions, air-conditioning, machine and manufacturing, security and surveillance, electronic sub-systems, personal armour and software services. |
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As per government rules, only an Indian company or a partnership firm with a resident Indian as its chief executive would be allowed to undertake defence production. It allows 100 per cent privately-owned companies with upto 26 per cent foreign equity participation to take up production of arms and ammunition. Tatas' armoury - 3,000 light armoured multi-role vehicles
- 1,000 armoured logistics carriers
- 100 armoured engineer vehicles
- 1,000 special attack and survelliance vehicles
- 1,000 high mobility vehicles
- 100 armoured recovery vehicles
- 500 heavy tank transporters
- 1,000 shelters and containers
- 50 tactical floating bridges and feerries
- 250 tracked armoured vehicles
- 1,000 bullet proof cars
- 500 mine protected vehicles
- 50 mechanised material, handling and bridging equipment
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