Govt approves abolition of norms for JV firms by Defence PSUs

Government today approved the abolition of existing guidelines for establishing joint venture companies by Defence PSUs to meet the goal of indigenous manufacturing. The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here.

"The Department of Defence Production came to the conclusion that with the increasing participation of the private industry in defence sector and the transformation taking place in the defence acquisition eco system thereon, the requirement of having separate JV guidelines for DPSUs is no longer considered necessary.

"In the emerging scenario with primacy being accorded to indigenous manufacturing/Make in India, it is felt that having multiple set of guidelines may lead to ambiguity and incongruity in the environment," an official statement said.

The guidelines which were notified in February, 2012 will not be required for separate JV by the DPSUs.

"The Guidelines issued by the Department of Public Enterprises (DPE) and Ministry of Finance (MoF) from time to time, which are uniformly applicable to all Central Public Sector Enterprises (CPSEs) will be applicable for the DPSUs to set up JV companies now," the statement said.