UK's largest military systems manufacturer BAE Systems today said it is awaiting the government's approval for picking up a 49 per cent stake in a defence joint venture with Mahindra group.
India has restricted foreign participation in domestic defence production in the private sector to about 26 per cent and the government is already debating the possibility of allowing foreign companies to pick up 49 per cent stake. "We are picking up a 49 per cent shareholding in M&M's defence venture, for which we have sought clearance from the Indian government," BAE Systems India's newly-appointed president Julian Scopes said here today. BAE Systems' proposal needs to be cleared by the government's Foreign Investment Promotion Board (FIPB). Due to the restrictions, BAE Systems has sought an exception to the rule from the government, as it has done in the case of some Defence Public Sector Undertakings (PSUs). "Rules say exceptions can be made. We have made the request through the FIPB in May-June this year and are in discussions with the government. The Indian Defence Ministry has an important say in this regard and we are waiting to hear from the government on our request," Scopes said. Under the arrangement with automotive-to-technology conglomerate Mahindras, BAE Systems would bring in global intellectual capabilities in land vehicles systems, particularly in the area of mine protected vehicles for which the British major has done advanced technology development work in South Africa. With India's need for mine-resistant vehicles on the rise, BAE Systems sees greater scope for their business to expand in the Indian defence market, he said. Source: Economic Times ekamber The greatest lesson in life is to know that even fools are right sometimes. ---Churchill --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
