NEW DELHI: A 49 per cent FDI cap has been kept for setting up ventures under the strategic partnership model for production of defence platforms and the companies will be in control of Indian entities.
As per documents released by the defence ministry today, the management of the applicant companies will have to be in Indian hands with majority representation on the board of directors.
The Government last week finalised the much-awaited strategic partnership (SP) model under which select private firms will be roped in to build military platforms like submarines and fighter jets in India in partnership with foreign entities.
Initially, the strategic partners will be selected in four segments — fighter aircraft, helicopters, submarines and armoured fighting vehicles/main battle tanks. It is expected to be expanded to other segments at a later stage. (AGENCIES)
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