Article Posted on : - Jul 09, 2014

NEW DELHI (PTI): Foreign Direct Investment beyond 26 per cent in defence sector may be permitted on a case-to-case basis in areas that can result in access to modern and state-of-the art technology, the government has said.

"As per the current FDI policy, up to 26 per cent FDI is permissible in the defence sector subject to licensing through government route.

"However, wherever FDI beyond 26 per cent is likely to result in access to modern and state-of-the art technology in the country, decisions can be taken to allow higher FDI on a case-to-case basis with the approval of Cabinet Committee on Security," Defence Minister Arun Jaitley said in a reply to a question in the Rajya Sabha.

He added that 28 private sector companies are having FDI varying up to 26 per cent.