GOVT. SETS JOINT VENTURE NORMS FOR DEFENCE PSUs

To strengthen tie-ups between defence public sector undertakings and their private partners, the Union Cabinet approved guidelines for setting up joint ventures. Government rules only allow 26 per cent foreign direct investment in the defence sector. A European defence company official said that “Public sector companies are not too keen to create new companies holding majority shareholdings. The new guidelines will allow a domestic private sector company to tie up with a foreign private sector company and form a joint venture with the defence Public Sector Undertakings (PSU).”