The Department of Industrial Policy and Promotion (DIPP) has conditionally approved 11 industrial licenses for 8 subsidiaries of Reliance Defence.
As many as 32 proposals were cleared by a high-powered panel for setting up manufacturing units in the explosives and defence sectors, including Reliance Naval Systems Ltd., Reliance Defence Technologies Pvt Ltd, Reliance Helicopters, Reliance Propulsion Systems Ltd and Reliance Aero-structure Ltd.
The central government had recently relaxed the policy in order to attract foreign direct investment and boost defence manufacturing in the country, which imports up to 70 percent of its military hardware.
The government has permitted FDI up to 49 percent under automatic route and beyond through the FIPB’s approval. Portfolio investment and investment by FVCIs has also been allowed up to permitted automatic route level of 49 percent.
Anil Ambani-led Reliance Group has committed to invest around Rs 46,000 crore in sectors such as defence, energy, IT and electronics in Madhya Pradesh. The group plans to invest in Bhopal and Pithampur industrial area near Indore in the defence sector.