Kishore Kumar Khera replies: A contract for procurement of 62 C295 aircraft is under consideration for replacement of 56 HS748 Avro for the Indian Air Force (IAF) and the balance six aircraft for the Indian Coast Guard. Of these, 16 aircraft are to be built by the original equipment manufacturer (OEM) and the balance aircraft will be manufactured in India. To facilitate aircraft manufacturing in India, certain Transfer of technology (ToT) is inevitable.
Increase in FDI Cap Alone Not Enough for Defence Sector
Raising the FDI limit by itself may not enthuse the foreign investors as per the expectations. To make the defence sector more attractive for foreign investment, a whole lot of other related issues will have to be addressed by the government.