Saturday, February 4 2006 18:08 Hrs (IST) - World Time -

Kolkata: Defence minister Pranab Mukherjee today(Feb 4,2 006) asked the private sector to come forward in a big way for production of defence material along with overseas partners.

The Government has received 22 Letters of Intent from foreign companies for entering defence production, he said at an interactive session organised by FICCI here.

Since the Government had allowed 26 per cent Foreign Direct Investment in defence production through the licensed route, the foreign companies were required to tie up withIndian firms for setting up bases.

The private industry should actively look at this opportunity and participate in production of defence material, he said.

Mukherjee said the country's private industry has the requisite skills and infrastructure necessary for undertaking defence production. The legal framework for effective participation is already in place.

Till now, defence production had been largely confined toOrdnance factories and defence PSUs.