Ready to Fire ; a Clutch of Indian Conglomerates Is Keen to Grab a Piece of the Indian Defence Pie. So, What's Stopping Them?

Summary

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Kamal K. Singh is spoilt for choice. The Chairman of the Rolta Group holds licences from the defence ministry to make night vision equipment, electronic warfare and communication equipment.

French defence major Thales is the technology partner. Now, Singh can form a new joint venture (JV) where Thales would hold 26 per cent; foreign direct investment (FDI) in defence manufacturing is capped at that level. Plan B is to pare Thales' 49 per cent stake in an existing JV called Rolta Thales, which provides technology solutions to the defence ministry, but is not a manufacturing company.

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Extract

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Ready to Fire ; a Clutch of Indian Conglomerates Is Keen to Grab a Piece of the Indian Defence Pie. So, What's Stopping Them?

There's also a Plan C. A Parliamentary Standing Committee had recommended in late-2008 that the FDI cap be eased to 49 per cent. If the new government takes that step and Defence Minister A.K. Antony has been making noises about speedy modernisation Rolta Thales can produce the defence equipment without changes in shareholder...

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