ASSOCHAM reiterates its demands for 49 % FDI in Defence; Air Force to receive all six C-130Js in 2011
  • Share
  • Tweet
  • Email
  • Whatsapp
  • Linkedin
  • Print

    • Reiterating its earlier stand, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has demanded the government to increase FDI in defence industry from present 26 per cent to 49 per cent. The industrial association has however asked the government to subject all the defence related FDI to government approval. The increase in FDI cap “will allow for a significant degree of control by Indian government on FDI inflows in defence and encourage domestic industry to seek meaningful foreign tie-ups through which defence indigenization can grow to an intended level of 70 per cent.”1

    The Indian Air Force (IAF) is expected to receive the first two C-130J advanced tactical airlifter in February 2011, followed by the remaining four by the end of the year. In 2008, India had signed a $1 billion contract with the US for procurement of six aircrafts under the Foreign Military Sales (FMS) route, with the option for six more without any cost escalation. The Lockheed Martin, the maker aircrafts, is presently undertaking pre-delivery flying testing of one C-130J, with the others at various stages of construction. The induction of C-130J will significantly enhance IAF’s strategic lift capability. The aircraft is equipped with night landing capability and can operate from a small airstrip of a football filed-sized.2

    Top