New Delhi, July 27 (IANS) The Union Cabinet on Wednesday approved doing away with the existing guidelines for establishing joint venture companies by defence public sector undertakings (DPSUs).
These guidelines which were notified in February 2012 will not be required for separate joint ventures by the DPSUs, the guidelines issued by the Department of Public Enterprises (DPE) and Ministry of Finance (MoF) from time to time, which are uniformly applicable to all central public sector enterprises (CPSEs) will be applicable for the DPSUs, an official statement said.
According to officials, the abolition of the guidelines will provide a level playing field between DPSUs and the private sector.
“It will allow DPSUs to forge partnerships in an innovative manner enhancing self-reliance in defence and provide for enhanced autonomy of DPSUs,” officials said.
All nine DPSUs, that is, Mazagon Dock Ltd, Goa Shipyard Ltd, Garden Reach Shipbuilders and Engineers Ltd, Hindustan Shipyard Ltd, Bharat Electronics Ltd, Hindustan Aeronautics Ltd, Bharat Earth Movers Ltd, Bharat Dynamics Ltd and Mishra Dhatu Nigam Ltd will be benefited through this decision.
“In the emerging scenario with primacy being accorded to indigenous manufacturing and ‘Make in India’, it is felt that having multiple set of guidelines may lead to ambiguity and incongruity in the environment,” an official added.