49% FDI in defence to be allowed selectively: Govt

Fanning the hopes of private industry, the government today said it would consider allowing 49% foreign investment in the defence sector "on a case-to-case basis."

"We will stick to the policy of allowing 26% FDI in Indian defence sector. We will consider allowing 49% FDI only on a case-to-case basis, if the industry is able to convince us," Defence Minister A K Antony told an Assocham seminar on Defence Procurement Policy here.

Stating that India favoured openness in its defence deals, Antony assured the industry there would be no more "veil of secrecy" surrounding the tendering process.

"We believe in open deals. There will be no more veil of secrecy in the Request for Proposals. Details would be made available to all industry representatives by placing the tenders on the net, except in the most sensitive cases, which is a minuscule number," he said.

Claiming that the government believed openness would ensure speedy procurement, the Minister said best equipment at affordable prices would be the norm for allotment of contracts.

"Earlier, only a select few companies got the RFP. But with the implementation of the new Defence Procurement Procedure-2008 (DPP-08), we will ensure every industry gets the tender details. That way we ensure transparency and also widen the vendor base," he said.