The government will fund 80 percent of the prototype cost and partners will be expected to fork out the remaining 20 percent.
India, the world's largest arms importer, will spend USD 250 billion in the next decade on kit, analysts estimate, to upgrade its Soviet-era military and narrow the gap with China, which spends USD 120 billion a year on defence.
Notwithstanding the policy grey areas regarding FDI in defence production, foreign vendors are excited about future avenues in India, as the country's defence forces are planning to procure weapons worth USD 100 billion in the next 10 years.
News of an important defence deal that could have been won by a consortium of companies including L&T is doing the rounds. MV Kotwal, Member of L&T Board & President-Heavy Engineering, tells CNBC-TV18 that the company has partnered with Tata Power and HCL for the deal.
UR Associates has come out with its report on infra sector. As per the research firm, HCC has received approval from 27 banks for the re-alignment of its debt and is likely to sign the deal soon.