Govt clears joint ventures by defence PSUs

The government on Thursday cleared a set of guidelines proposed by the Defence Ministry for creation of joint ventures between defence PSUs and private and foreign companies. Under the guidelines,defence PSUs will retain the right of prior approval to key decisions such as sale of substantial assets,formation of new joint ventures or subsidiaries,and amendments to the articles of association.

The Cabinet approved the guidelines,which the ministry hopes would increase the opportunities to obtain advanced technologies from foreign sources that can boost substantive self-reliance in the sector.