New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharaman on Saturday announced that the government has decided to raise the Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route from 49 per cent to 74 per cent.

Sitharaman further said that the central government will notify a list of weapons and platforms banned for imports while adding that such items can only be purchased from India.

"'Make In India' for self-reliance in defence production - we will notify a list of weapons and platforms for ban on import with year wise timelines. There will be indigenisation of imported spares," Sitharaman said.

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Also, there will be indigenisation of some imported spares, Sitharaman said adding separate budget provisioning for domestic capital procurement will be done. The Finance Minister said that it will reduce the huge defence import bill.

Ordnance Factory Boards will be corporatised for better management and eventually get listed on the stock market, she said adding corporatisation is not privatisation, Sitharaman said.

For the time-bound defence procurement process and faster decision-making, project management unit (PMU) to support contract management will be set up, she added.

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Following the Finance Minister's announcement, Defence Minister Rajasthan Singh that the corporatisation of Ordnance Factory Board (OFB) has been topmost priority of the central government which will improve efficiency of our ordnance supplies and factories.

"FDI limit in defence manufacturing under automatic route has now been raised from 49 per cent to 74 per cent. This will unleash true potential of Indian defence production capabilities through ‘Make in India’. Announcements made today will prove to be game-changer," Rajnath said.

Sitharaman on Saturday announced the fourth tranche of the Rs 20 lakh economic stimulus package that was announced by PM Modi earlier this week.

PM Modi had announced about the massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore, saying the coronavirus crisis has provided India an opportunity to become self-reliant and emerge as the best in the world.

(With PTI inputs)

Posted By: Aalok Sensharma