After opening up the defence sector to 100 per cent private participation, including 26 per cent foreign direct investment, the government is now in the process of setting up a regulatory committee consisting of representatives from the ministry of defence and the armed forces to oversee and control production and sale of equipment.
The government is also laying out several criteria, such as minimum capital base of applicant private companies (as is applicable in telecom sector) and previous track record in defence supply to the armed forces and government agencies, to be considered eligible for manufacturing licenses. An announcement will be made shortly.
