MSME Min tweets about govt's initiative to give big push to private payers in defence mfg
Updated: Jun 02, 2015 10:54:29am
New Delhi, June 2 (KNN) MSME Minister Kalraj Mishra took to micro blogging site twitter today morning to inform about government’s initiative to give a big push to private participation in defence manufacturing.
Defence manufacturing is one of the key sectors among the 25 sectors identified under the Make in India campaign launched by the Government of India.
A number of initiatives have been taken by the new Government to incentivize private sector, including foreign OEMs to engage in the Defence and Civil Aerospace sector. A series of consultations have been held across Ministries / Departments under the mentoring of PMO to enable simplification of rules and procedures to promote private participation under defence manufacturing and exports. This is hoped to stimulate big ticket investments and incentivize Manufacturing.
“There was a long standing demand of the Private Sector Manufacturers to bring parity between Domestic Private Players with Ordinance Factory Board and Defence PSUs in the matter of payment of Central Excise and Customs Duty,” according to an official statement.
As a major game changer, Government of India has withdrawn excise and customs duty exemptions presently available to goods manufactured and supplied to Ministry of Defence by Ordinance Factory Board and Defence PSUs, the release further added.
This will provide a level playing field to Domestic Private Players bidding for the Government contracts by taking away the strategic advantage with PSUs for quoting lower rates in open bids, it said.
With this initiative, the Government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, Lockheed Martin, BAE Systems etc who are actively exploring the scope of future investments in India.
The Indian aerospace and defence market is among the most attractive globally as India is highest importer of defence items in world.
The Government has systematically opened up the sector for private investment by increasing FDI cap in defence to 49 per cent and rationalizing conditions. Almost 60 per cent items required for industrial licence have now been de-reserved. Business re-engineering process has been affected across Departments and Ministries for a favourable manufacturing and export platform for private sector companies.
The recent Notification from Department of Revenue will provide a definitive message to foreign OEMs that India is open to business for defence manufacturing, it said. (KNN/SD)
Defence manufacturing is one of the key sectors among the 25 sectors identified under the Make in India campaign launched by the Government of India.
A number of initiatives have been taken by the new Government to incentivize private sector, including foreign OEMs to engage in the Defence and Civil Aerospace sector. A series of consultations have been held across Ministries / Departments under the mentoring of PMO to enable simplification of rules and procedures to promote private participation under defence manufacturing and exports. This is hoped to stimulate big ticket investments and incentivize Manufacturing.
“There was a long standing demand of the Private Sector Manufacturers to bring parity between Domestic Private Players with Ordinance Factory Board and Defence PSUs in the matter of payment of Central Excise and Customs Duty,” according to an official statement.
As a major game changer, Government of India has withdrawn excise and customs duty exemptions presently available to goods manufactured and supplied to Ministry of Defence by Ordinance Factory Board and Defence PSUs, the release further added.
This will provide a level playing field to Domestic Private Players bidding for the Government contracts by taking away the strategic advantage with PSUs for quoting lower rates in open bids, it said.
With this initiative, the Government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, Lockheed Martin, BAE Systems etc who are actively exploring the scope of future investments in India.
The Indian aerospace and defence market is among the most attractive globally as India is highest importer of defence items in world.
The Government has systematically opened up the sector for private investment by increasing FDI cap in defence to 49 per cent and rationalizing conditions. Almost 60 per cent items required for industrial licence have now been de-reserved. Business re-engineering process has been affected across Departments and Ministries for a favourable manufacturing and export platform for private sector companies.
The recent Notification from Department of Revenue will provide a definitive message to foreign OEMs that India is open to business for defence manufacturing, it said. (KNN/SD)
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