Licensing committee looking into proposals of more than 6 firms
Corporates such as Mahindra & Mahindra, Larsen & Toubro and Ashok Leyland are showing an increased interest in the defence production sector.
More than half a dozen companies have applied for fresh industrial licenses to manufacture several defence related products such as guns, pistols, mount surveillance sensors and ancillary equipment, avionics, military aircraft, arms and armaments, cartridges for pistols, etc.
More From This Section
These proposals were considered by the licensing committee (sub-committee) in the last week of March, and some of them have been cleared, an industry ministry source said.
Sources said that it is interesting that there are applications to produce as high-technology products like even military aircrafts, etc.
Max Aerospace & Aviation has applied for industrial license to engage in the production of avionics, military aircraft, arms and armaments.
Similarly, Mahindra & Mahindra has sought license for modification of the Mahindra Pick-up to mount surveillance sensors and ancillary equipment.
Ashok Leyland Ltd is seeking a new license to manufacture light armoured multi-role vehicles.
Misratech has applied to manufacture 0.32 inch pistols with accessories, cartridges for 0.32 inch pistols, etc.
This apart, the licensing department also considered applications for shotguns and hand guns, explosives and bullet proof jackets.
Mahindra & Mahindra has been engaged with the defence sector for manufacturing armoured vehicles and Ashok Leyland for producing trucks.
The government had restricted private participation in the defence production sector until the end of 2000, when the cabinet cleared a proposal to allow private participation from both domestic as well as foreign companies.
As per policy guidelines, a foreign company cannot pick up more than 26 per cent shareholding in a company engaging in defence production. Private sector participation can, however, be 100 per cent.
So far, the government has not received any proposal for foreign investment in the sector. There are no proposals yet for foreign technology collaboration either, the sources said.
The government