The Swadeshi Jagran Manch (SJM) on Tuesday sought changes in the proposed ‘Defence Acquisition Procedure’ rules to limit benefits available for an ‘Indian vendor’ only to those having majority ownership and control with Indian resident citizens.
In a letter addressed to Prime Minister Narendra Modi, the economic wing of the Rashtriya Swayamsevak Sangh also sought his intervention to ensure that foreign entities do not get any advantage over entities owned and promoted by Indian resident citizens, simply by getting registered in India. “We are of the considered opinion that procurement from companies registered in India, where majority shareholding is that of foreigners, is no different from imports,” SJM co-convener Ashwani Mahajan said in the letter.
Applauding the government’s decision to ban import of 101 weapons and platforms in a staggered manner, Mahajan said a foreign entity can get registered in India or buy majority stake in an Indian firm as up to 74 per cent FDI is allowed in defence under the automatic route.