New Delhi, Feb 10 (KNN) The Ministry of Defence revealed that companies operating in the defence sector have reported Foreign Direct Investment (FDI) worth Rs 5077 crore.

In a Lok Sabha session on Friday, Minister of State for Defence, Ajay Bhatt, provided this data in response to a query.

Bhatt highlighted that the defence industry sector was opened up for private sector participation in May 2001.

“The FDI limit in the defence sector was enhanced in 2020 up to 74 per cent through the automatic route for companies seeking new defence industrial licence and up to 100 per cent by the government route wherever it is likely to result in access to modern technology,” Bhatt said.

“So far, Rs 5077 crores worth of FDI has been reported by companies operating in the defence sector,” he added.

The minister emphasised the government's efforts to promote co-development and co-production of niche defence technologies with foreign original equipment manufacturers to encourage FDI in the defence sector.

Additionally, in responding to another question, Bhatt informed that the defence ministry has recently signed a contract with Mazagon Dock Shipbuilders Ltd (MDL) for the procurement of six next-generation offshore patrol vessels for the Indian Coast Guard (ICG) at a total cost of Rs 1614 crore.

(KNN Bureau)