Reliance Defence pacts with Yugoimport
20th June, 2017Category:
Reliance Defence Ltd (RDL) has entered a strategic partnership with Serbia's state-run defence major Yogoimport to manufacture ammunition in India for a business target of Rs 20000 crore over the next 10 years.
Yugoimport, a state-owned enterprise, is a market leader in the field of ammunition production and has offered a fully compliant technical solution to meet the Make in India requirements of the Indian government, as per RDL.
India currently imports nearly 50 per cent of its ammunition requirements by value term, with an annual spending of more than Rs 10,000 crore on ammunition.
In 2014, Govt of India had liberalised the norms governing FDI in the defence sector. FDI to the extent of 49 percent is allowed under the automatic route, and FDI beyond that limit may be permitted if the government approves such a plan on a case-to-case basis.
But in the absence of any concrete and meaningful orders awarded out to these private sector and foreign companies, many of these partnerships exist on paper without much operations on the ground.
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