‘Ministry opposed to change in FDI caps’

February 06, 2011 12:41 am | Updated October 08, 2016 06:24 pm IST - GHAZIABAD

Defence Minister A.K. Antony on Saturday re-emphasised that his Ministry did not want any hike in the Foreign Direct Investment (FDI) cap from the current limit of 26 per cent, while maintaining that the final call was yet to be taken by the government.

“We have the same stand of 26 per cent limit,” Mr. Antony told journalists here after a ceremony to induct the C-130J Super Hercules aircraft into the IAF.

He was responding to a question whether the Defence Ministry had taken a final view on the issue as suggested by the Ministry of Commerce, which moved a note to raise the cap from the current levels to up to 49 per cent.

Pushing for hike

Since the return of the UPA government in 2009, the Commerce Ministry has been pushing the envelope to raise the limits, arguing that the step would be conducive to the growth of the military industry. Domestic trade/industry organisations appear divided on it.

Asked whether outdated aircraft should be phased out, in the light of the death of two Army Majors in a Cheetah helicopter crash, Mr. Antony said such accidents and deaths were both sad and unfortunate.

Air Chief Marshal P.V. Naik, who was present on the occasion, said the force would phase out its oldest MiG-21 squadron within a year.

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