PIB News Update: Raksha Rajya Mantri Shri Shripad Naik has informed that Government policies and initiatives encourage all foreign companies including Russian companies to set up their manufacturing facilities in the country through partnerships/joint ventures with Indian companies. So far, 42 FDI proposals/Joint Ventures (JVs) have been approved for manufacture of various defence equipments, both in public and private sector which include 3 JVs with Russia viz. M/s Multirole Transport Aircraft Ltd, M/s Indo-Russian Helicopters Ltd and M/s Indo Russian Rifles Pvt Ltd.
Recently, an Inter – Governmental Agreement (IGA) on Joint manufacturing of Spares, Components, Aggregates and other material related to Russian/ Soviet origin Arms and Defence Equipment was signed during the 20th India-Russia Bilateral Summit held at Vladivostok on 04.01.2019. The objective of the IGA is to enhance the After Sales Support of Russian origin equipment currently in service in Indian Armed Forces through partnership of Russian OEMs with the Indian industry under the framework of “Make in India” initiative. The IGA stipulates assurance of orders for minimum five years to manufacturing facilities created under the agreement subject to reduction in cost, reduction in time frame of supplies and ensuring progressive indigenisation of products in India.
Government has decided to set up one corridor each in Uttar Pradesh and Tamil Nadu. During the Aligarh meet on UP Defence Industrial Corridor held on 11.08.2018, investments of over Rs. 3700 Crore were announced by OFB/DPSUs/private industries for Uttar Pradesh Defence corridor. Similarly, during the launch of Tamil Nadu Defence Industrial Corridor held at Tiruchirappalli on 20.01.2019, an investment of over Rs. 3100 crore was announced by OFB/DPSUs/private industries for Tamil Nadu Defence corridor.