L&T eyes more of defence equipment manufacturing market
In a bid to open up the private defence market further, the government is likely to announce a list of private companies which will manufacture weapon systems for the armed forces.
By PTI |
MUMBAI: In a bid to open up the private defence market further, the government is likely to announce a list of private companies which will manufacture weapon systems for the armed forces.
The list is expected to comprise 12 private sector firms with a turnover of Rs 1,000 crore - to be called Raksha Udyog Ratnas (RURs), or defence production jewels.
The list may include Larsen and Toubro (L&T), Tata Group, Godrej, Mahindra and Mahindra, Bharat Earth Movers.
Engineering major L&T said, this would give an opportunity for the company to grow further in country's defence manufacturing market.
"RURs will be treated on par with defence public sector units, given financial support to develop weapon systems and handed designs by the Defence Research Development Organisation (DRDO).This will open greater opportunities for us," L&T Chairman and Managing Director A M Naik told the media.
This is aimed at reducing delivery time by cutting dependency on imports and providing greater choice to the armed forces.
"We have Rs 3,000 cr order backlog, which we do at Rs 500 crore per year as it is six years backlog. The order book should increase after the government announcement is made," he said.
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