Armed forces awards 96 contracts to equipment vendors in three years

A total of 96 contracts worth Rs 85,733 crore have been signed with Indian vendors for capital procurement of defence equipment for the armed forces in the last three financial years, said Subhash Bhamre, Minister for State for Defence. 
 
As many as 58 contracts worth Rs 12,1563 crore have been signed with foreign vendors for acquisition of defence equipment in the same period even as the Foreign Direct Investment Policy for the defence sector has been gradually liberalised in the last two years to encourage defence indigenisation, the minister added.
 
“Defence projects involve long gestation period and investment inflow takes time even after the projects are approved and contracts awarded. There is always a time lag before the impact of FDI is visible,” he said.
 
“The FDI in the sector could be the most trusted route to technology transfer which would help in increasing the defence production base and provide the much needed impetus to self-reliance and indigenisation in the defence sector,” the minister added.