India is drawing up guidelines to define "state-of-the-art" technology and enable the flow of FDI in the defence sector, a report in ‘The Economic Times’ has said..
Guidelines are key, since Foreign Investment Promotion Board is considering an application from French firm DCNS.
Earlier this week, government rejected Apple Inc's appeal seeking exception from a 30% local sourcing norm for firms bringing cutting-edge technology and setting up stores in India.
The iPhone maker's suggestion was rejected in the absence of clear guidelines or a definition for "cutting-edge" technology, even though the FDI policy mentions the phrase.
"The defence ministry is working on guidelines," a senior government official told the paper.
A clear outline is needed to facilitate the selection of proposals that involve FDI above 49 percent and to make the process transparent without any room for discretion, the official said.
Defence ministry is also planning to set up a panel comprising technology experts from the Defence Research & Development Organisation.
Panel would scrutinise FDI proposals and check what they bring to the table as far as technology is concerned. It may also include members from the public sector unit concerned, the three services as well as external advisors.