(a) whether the Government proposes to invest Rs. 10000 crore on
defence projects as reported in the “Hindustan†dated February 8,
2005;
(b) if so, the details of the projects identified;
(c) whether the Government has also proposed to invite foreign
investors in the defence sector; and
(d) if so, the details thereof alongwith percentage of share
offered to foreign investors in these projects?
MINISTER OF DEFENCE (SHRI PRANAB MUKHERJEE)
(a) Government has sanctioned an amount of Rs. 11,078 crores for
projects such as Light Combat Aircraft (LCA), Kaveri Gas Turbine
Engine and Airborne Early Warning and Control (AEW&C) System.
(b) The present status of these projects are as under:-
Light Combat Aircraft:-Three prototypes of LCA (Tejas) have
completed 376 test flights including supersonic flights. Another
four prototypes will join test flights during 2005. Initial
Operational Clearance (IOC) is planned to be obtained by March 2007.
Kaveri Gas Turbine Engine:-Kaveri engine has completed 1300 hrs
of ground and high altitude testing . First Kaveri engine is
scheduled to be integrated with LCA by March 2007.
Airborne Early Warning and Control (AEW&C) System:- AEW&C was
sanctioned on 6th October 2004. The system specifications vis-Ã -vis
the operational requirements have been formulated. The project is
likely to be completed in about seven years.
(c) & (d): Government has a policy to encourage the joint
development and production with foreign investors. However, no
concrete proposals have been received in this regard.