Indian Foreign Investment Promotion Board (FIPB) has rejected three Foreign Direct Investment (FDI) proposals in the defense manufacturing sector.
The three defence manufacturing companies that had their FDI proposals rejected include Harris Communications Systems India, Schoeller Technologies India and Barracuda Camouflage, a subsidiary of Swedish Saab.
Harris Communications Systems India Private Limited, a wholly owned subsidiary of Harris Corporation, USA engaged in providing communication services had sought approval for commencement of defence liaison activities which are presently carried on by another subsidiary of Harris Corporation i.e. Exelis Liaison Office.
Approval had been sought by Schoeller Technologies India after directions from SIA, DIPP to obtain the approval of FIPB as FDI beyond 49% in Defence requires prior government approval. The applicant is engaged in the business of textiles and has applied for a tender with Ministry of Defence for supply of defence-related products.
Barracuda Camouflage had sought approval to undertake certain additional activities pertaining to manufacture, marketing and sale of concealment/ deception equipment, camouflage nets and equipment designed for military applications etc.
The decisions were taken based on the recommendations of the FIPB, which met on October 27.