Indian Economy-News & Updates

[Abhishek_]

LNG project for State turns a reality

First vessel carrying natural gas berths at Petronet LNG terminal in Kochi

Kerala made a historic leap in the energy sector on Tuesday with the vessel carrying natural gas from Qatar docking at the Petronet LNG terminal at Puthuvype near here. Wilenergy, the LNG carrier laden with 123,000 cubic metre of liquefied natural gas, berthed at the jetty at 7 a.m., taking Kochi on the world LNG map.

Though the vessel had arrived at the outer channel a week ago, there was a delay in bringing the vessel to the jetty as the excessive silt deposited due to heavy rain in the LNG basin had to be removed. As part of the commissioning of the terminal, the vessel will be berthed for more than a week during which time the storage tanks will be cooled down to receive the liquefied gas kept at minus 160 degree Celsius.

The process may involve flaring of some gas till the systems are stabilised, Petronet LNG managing director, A.K.Balyan, said at a press conference here. Commercial supplies of regasified LNG to BPCL Kochi Refinery and FACT, the first two LNG consumers in the State, will begin within a week. HOCL, Nitta Gelatin and BSES are expected to join the list of consumers soon. The LNG terminal, built at Rs.4,200 crore, would be functioning initially at less than 10 per cent of its capacity.

Mr.Balyan said he hoped to extend piped natural gas for domestic consumption shortly.

He hinted at the prospects of Petroleum Natural Gas Regulatory Board, vested with the authority for inviting tenders for laying supply lines for PNG, resuming the process soon. The PNGRB had earlier set in motion the tendering process for various cities, including Kochi, but had withdrawn it for bringing in certain reforms. Petronet LNG, which supplies ‘Taral’ natural gas for domestic consumers, was ready to supply it in Kochi, he said.

Asked about the prospects of supplying natural gas to KSRTC, Mr.Balyan said a pilot project for supply of compressed natural gas (CNG) for automotives to be set up in Kerala was being finalised. Under the project, a few CNG dispensing stations will be set up and a few hundred buses could be converted for running in the CNG mode. The State government has taken keen interest in the project, he said. Petronet LNG has submitted a detailed project report for generation of power at the site adjacent to the LNG terminal as a joint venture with the State government.

LNG project for State turns a reality - The Hindu

 

[Abhishek_]

India's ONGC to pick up stake in African gas field

India's biggest oil explorer, Oil and Natural Gas Corporation (ONGC), has agreed a deal to buy a 10% stake in an offshore gas field in Mozambique.

It will pay Anadarko Petroleum, a US firm, $2.6bn (£1.7bn) for the stake.

The state-controlled firm has been keen to secure supplies in an attempt to meet growing domestic demand for fuel.

It said the field in Mozambique was "strategically located" to supply liquefied natural gas (LNG) to India at a "competitive price".

Sudhir Vasudeva, chairman of ONGC Videsh Limited (OVL), the firm's unit which has agreed the deal, said the gas field had the "potential to become one of the world's largest LNG projects".

He added that the deal was a significant step "towards the energy security of our country".
Securing supplies

India, Asia's third-largest economy, relies heavily on imports to meet the domestic fuel demand.

The country has the world's second-largest population. As its economy continues to grow, demand for fuel is expected to rise further in the coming years.

As a result, firms such as ONGC have been looking to acquire overseas assets in an attempt to secure long-term supplies.

This is the second such deal signed by the firm in recent months.

In June, along with Oil India, it agreed to buy 10% stake in the the Rovuma Area 1 field in Mozambique from the Videocon Group for $2.48bn.

Last year, ONGC inked a deal to buy ConocoPhillips's 8.4% stake in Kazakhstan's Kashagan project for $5bn - its biggest overseas acquisition.

BBC News - India's ONGC to pick up stake in African gas field

 

[Abhishek_]

The Indian government has approved infrastructure projects worth 1.83tn rupees ($28.4bn; £17.7bn) to revive the economy and boost the falling rupee.

Finance Minister P Chidambaram said 36 stalled projects in oil, gas, power, road and railways sectors were cleared.

"The message we are sending is that the investment cycle has restarted, and we are pushing it," he said.

The announcement came on a day the rupee hit a new record low, touching 65.6 against the US dollar.

Recent attempts to reduce volatility in currency markets have so far failed to have any result.
'Be patient, be firm'

The finance minister told reporters on Tuesday that the rupee had "overshot its true level", but said that India was not the only country facing problems.

"As I said in parliament, every emerging market is challenged today. So India is also challenged, and the impact is felt both on the equity market as well as the currency market," news agency Reuters quoted him as saying.

"I think we'll simply have to be patient, be firm, do whatever is required to be done, and the rupee will find its appropriate level.

"What I said a few days ago, I still maintain it. The rupee has overshot its true level, it's undervalued.

"Others have confirmed it. And we have to be patient and we have to be firm and we have to do what requires to be done," he said.

Mr Chidambaram also tried to allay fears over the impact of the Food Security Bill on the country's finances.

The bill, which was approved by the lower house of parliament on Monday night, is aimed at providing subsidised food to two-thirds of the population in an effort to eradicate the widespread hunger and malnutrition plaguing India.

But the ambitious legislation will cost 1.3tn rupees ($19.76bn; £12.75bn) a year. Critics say it is a profligate plan that will hurt India's economy.

However, the minister said it would not lead to the government overshooting its fiscal deficit target.

"After providing for the Food Security Bill, we will remain within the limit I have set for myself in the budget," he said.

The country has already been hurt by a slowdown in growth and a widening current account deficit.

Its economy, Asia's third-largest, grew at an annual rate of 5% in the 2012-13 financial year, the slowest pace in 10 years.

BBC News - India infrastructure projects set to boost economy

 

[SpArK]

Tata group market value nears Rs 6 trillion - The Times of India

NEW DELHI: Largely unaffected by the recent carnage in stock markets, salt-to-software conglomerate Tata Group is closing in on to become the country's first business house to attain a market valuation of Rs 6 lakh crore.

The cumulative market capitalisation of all 32 listed companies of the Tata group has risen to nearly Rs 5.90 lakh crore as on Friday — the highest for any business house in the country and almost double the market value of the second ranked Mukesh Ambani-led Reliance Industries Group.

The total market value of Tata group exceeds the combined market capitalisation of at least three leading business houses in the country — Mukesh Ambani-led RIL group (about Rs 2.75 lakh crore), Kumar Mangalam Birla-led Aditya Birla Group (about Rs 1.5 lakh crore) and Anil Ambani-led Reliance Group (about Rs 62,000 crore).

Interestingly, the Tata group's market value has grown substantially over the past one year, including in the past few months when the overall stock markets have been facing strong headwinds and have lost value.

In the past three months, the Tata group's valuation has grown by over Rs 80,000 crore or over 15 per cent, while the total valuation of Indian markets has actually fallen by about 10 per cent during the same period, shows an analysis of data available from stock exchanges.

Tata group, which saw a change of leadership late last year from Ratan Tata to Cyrus Mistry, has seen its valuation growing by over Rs 1 lakh crore since the beginning of this year.

On the other hand, valuations of many other large groups have remained either flat or have fallen in the recent months amid a huge volatility in stock markets.

While Tatas have the largest number of listed companies among major business houses in the country, RIL alone used to command a market value of over Rs 4 lakh crore a few years ago as the country's most valued company.

However, this position is now occupied by Tata group firm TCS (Tata Consultancy Services) with a market cap of close to Rs 3.96 lakh crore.

In comparison, RIL's market cap currently stands at about Rs 2.75 lakh crore, while its only other listed group company, Reliance Industrial Infrastructure Ltd, has a market value of just about Rs 440 crore.

 

[SpArK]

India, Taiwan look at deepening trade links - Indian Express

India and Taiwan are exploring opportunities to increase investment and trade with each other, while a similar exercise is yet to be carried out with China, which claims Taiwan as its own.

The ministry of external affairs has funded a study on enhancing trade, investment and cooperation between India and Taiwan, conducted by the Indian Council for Research on International Economic Relations (Icrier).

The report has been prepared and will be taken up for discussion now. India is looking at wholly-owned subsidiaries, partnerships and joint ventures with Taiwanese companies to boost trade ties between the two nations.

However, free trade agreement with Taiwan is not on the cards as India does not have diplomatic relations with the country, an official told The Indian Express.

"Taiwan has shown a lot of interest in investing in India. They are mainly looking at electrical and electronic goods, food processing, machine tools and SME sector in India," the official said.

The two countries have already signed an investment promotion and protection agreement. The foreign direct investment from Taiwan stood at $65.56 million in 2011-12, or 0.04 per cent in the total FDI flow to India.

 

[Abhishek_]

Mercedes rolls out new GL-Class from Pune plant

German luxury car maker Mercedes-Benz, on Monday, started production of the second-generation GL-Class from its plant here, making India the only market to roll out the model outside the company’s SUV (sports utility vehicle) plant in Tuscaloosa, U.S.

“We saw good demand for the GL-Class ‘Launch Edition’, for which 100 units were sold within 15 days of launch. The local production will provide benefits to our customers in the form of easier availability as well as cost benefit,” Mercedes-Benz Managing Director and CEO Ederhard Kern said.

Priced at Rs.72.58 lakh (ex-showroom Pune), the model will be cheaper by about Rs.5 lakh than its ‘Launch Edition’.

Stating that the full-size luxury SUV was a fast-growing segment in India, Mr. Kern said the company had no plans to export the model from India.

“We expect GL will be one of our volume sellers. Hence, we have gone ahead with local manufacturing for the model,” he added.

Besides the GL Class, the German car-maker rolls out E Class, S Class, C class and ML Class models from the Chakan plant near Pune in Maharashtra.

The plant’s present capacity is 10,000 units, which will be increased to 20,000 units by next year.

The luxury car-maker has sold 3,765 units during the January-June period, a growth of 18 per cent over the same period last year.

The company is also witnessing a good demand for its A Class and B Class compact luxury cars, and is seeking more units of the two from the parent to meet the demand in India.

Both A Class and B Class fit very well in India. The two together have sold over 1,000 units since their launch.

The GL-class comes packed with features, including active park assist, cross wind stabilisation and 360 degree camera.

Mercedes rolls out new GL-Class from Pune plant - The Hindu

 

[cloud_9]

Sensex surges 727 points as rupee rebounds, Syria fears ease

Indian shares jumped nearly 4% on Tuesday, their biggest single-day gain since May 2009, led by blue chips, as receding fears of a US-led military strike on Syria and a sturdier rupee sparked hopes about foreign investor flows.

Rupe is at 63.84.

India's August trade deficit narrows to $10.9 billion as exports rise

NEW DELHI: India's trade deficit for the month of August narrowed to $10.9 billion, versus $12.26 billion in July. The deficit narrowed on the back of improving exports and declining imports, and was down 11% month-on-month.

Major Asian indices up.Lets see if its Bulls or Bears for Sensex

 

[kbd-raaf]

Can India Replace China as a Manufacturing Hub?

In a season of odd news from China—remember the floating pigs?—this was just another bizarre story: A U.S. businessman was held captive by his Chinese workers after they discovered his plan to shift production to India. Charles Starnes, chief executive officer of Coral Springs (Fla.)-based Specialty Medical Supplies, is a free man again, leaving the grounds of his company’s site on the outskirts of Beijing late last month.

One reason this story is so strange is where Starnes wanted to go instead of China. Why would Specialty Medical or any other Western company want to move away from China, the world’s manufacturing hub, to India of all places? Chinese wages are going up, and the labor market is getting tighter, making it more difficult for companies that require a large supply of inexpensive workers to continue operating factories in China. That’s why some businesses are looking at alternatives in the region, such as Vietnam and Indonesia.

But for manufacturers that don’t want to rely too much on China, switching to India is no easy task. Notorious for its lousy infrastructure and inflexible labor laws, the country has long been a power in industries like software services and business process outsourcing but an also-ran among Asian countries trying to build up their manufacturing sectors.

The Indian government is attempting to change perceptions about the country. It has plans, for instance, to build an “industrial corridor” between Delhi and Mumbai. Working with the Japanese government, the Indians envision a series of seven new industrial cities equipped with what’s standard in China but still unusual in India: “The programme envisages development of infrastructure linkages like pioneer plants, assured water supply, high capacity transportation and logistics facilities,” according to the project’s website.

Helping to sell this vision of a new, can-do India, Commerce and Industry Minister Anand Sharma was in New York yesterday trying to convince business leaders of the idea that India as a place that can rival China as a manufacturing center. Indian wire service PTI reported that Sharma told his audience the government of Prime Minister Manmohan Singh intends to make India “the manufacturing hub of the world.”

Other Indian officials are following suit. Finance Minister Palaniappan Chidambaram was in the U.S. this week for the same meeting as Sharma and told attendees about the need to build the country’s manufacturing base. “It is in the mutual interest of both countries for India to become a large manufacturing economy,” he said.

The problem is, some Americans aren’t convinced India has changed its ways. They point to India’s plans to promote local manufacturing at the expense of foreigners. A proposal by the Indian government to favor Indian companies, for instance, has drawn complaints from lawmakers in the U.S. Senate Finance Committee. Chairman Max Baucus (D-Mont.) and ranking Republican member Orrin Hatch (Utah) last month released a letter to Secretary of State John Kerry calling on the Obama administration to address what they called “unfair trade practices” and “protectionism” of India. The senators described their “serious concern about policies adopted by the Government of India that shut out U.S.-made innovative products and transfer U.S. intellectual property to its domestic industry.”

In their letter, Baucus and Hatch focused on policies in the IT, telecom, and clean-tech industries designed to promote the purchase of Made-in-India products. These policies “block sales of U.S.-made innovative products and coerce U.S. companies to transfer their technology to local industry,” they wrote. “India is ignoring evidence from its own recent positive economic experience and is lapsing once again into protectionism.”

Ahead of Kerry’s upcoming visit to India, there are signs that the pressure may be working. On July 7, the Indian government said it would review the Preferential Market Access plan, a proposal that would favor domestically manufactured electronic goods. India’s Department of Electronics and IT is working on a revision of the policy now, with a deadline of early August.

The original PMA proposal had encountered opposition from business groups such as the American Chamber of Commerce in India and the Japan Information Technology Service Industry Association, and they are welcoming the about-face by the Indian government. For instance, the U.S.-India Business Council, a trade group representing American companies doing business in India, last week released a statement (PDF) that “applauded” a move by Prime Minister Singh to slow down the proposed Preferential Market Access plan. “India’s rethink of its PMA policy sends a strong and welcome signal that India is listening to investors,” U.S.-India Business Council (USIBC) President Ron Somers said in a statement.

Can India Replace China as a Manufacturing Hub? - Businessweek

The only industry that the India should be protectionist in is the defense and related industries.

All others must be as open and free as possible.

 

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India to explore all options to enhance oil import from Iran

NEW DELHI: Government today said it will explore all options to increase import of crude oil from Iran within the framework of UN sanctions.

"We are exploring the possibility within the overall UN sanctions. Without violating the sanctions to the extent that we can push oil import from Iran, that is being explored by the Oil Ministry," Economic Affairs Secretary Arvind Mayaram told reporters here.

India, which paid about USD 144.29 billion last fiscal for importing oil, is renewing imports from Iran as unlike imports from other countries it pays the Persian Gulf nation in rupees.

Oil Minister M Veerappa Moily has recently written to Prime Minister Manmohan Singh saying India could save over USD 8.5 billion in foreign exchange this fiscal by increasing crude oil imports from Iran.

"About 2 million tonnes crude oil has been imported from Iran so far during the current financial year. An additional import of 11 million tonnes during 2013-14 would result in reduction in forex outflow by USD 8.47 billion (considering the international price of crude oil at USD 105 per barrel)," Moily wrote.

Govt issued basin-wise list of critical infrastructure to fast track power projects

GUWAHATI:The task force on hydro power development of Government of India in order to fast track hydro power projects has issued a basin-wise list of critical infrastructure including roads/bridges and air connectivity to facilitate movement of men and materials for construction.

The sixth meeting of the Task Force on Hydro Project Development under the Chairmanship of Union Minister of State for Power, Jyotiraditya M. Scindia was held in New Delhi on Tuesday where it was stated that so far as development of infrastructure in North-east is concerned, CEA ( Central Electricity Authority) (CEA) has reviewed 95 projects (41,400.5 MW) capacity allotted by the State Government of Arunachal Pradesh which are yet to be taken up for construction.

 

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India Gives Initial Approval for Two Semiconductor Factories

NEW DELHI—India Thursday gave an initial approval for plans to set up two semiconductor-manufacturing facilities, but said it would seek proposals from more chipmakers before making a final decision.

The federal cabinet took the decision after evaluating proposals from two consortia that have Israel's Tower Semiconductor Ltd. and Franco-Italian STMicroelectronics as members.

Information and Broadcasting Minister Manish Tewari, who announced the cabinet decision, said the government will advertise the incentives it plans to offer and invite applications from other chipmakers that are looking to set up manufacturing facilities in India. The incentives include return of some state and federal taxes and cash subsidies.

The final decision will be taken after four weeks, Mr. Tewari told reporters.

Tower has teamed up with International Business Machines Corp. and India's Jaypee group to set up the facility. Hindustan Semiconductor Manufacturing Corp. is the partner of STMicroelectronics.

Asia's third-largest economy is trying to reduce its widening trade deficit by limiting imports, and boosting local production of electronic components is part of that strategy. India's import bill on electronic goods is expected to surpass those of gold and oil to become the largest by 2020.

India's demand for electronic hardware is expected to cross $400 billion by 2020, from about $45 billion now, according to the government. This will fuel demand for more than $50 billion of semiconductors which are used in toys and phones to fighter planes and satellites.

According to the India Electronics & Semiconductor Association, the country now consumes close to $7 billion of semiconductor products every year.

The government last year unveiled a policy to boost production of electronics in India. Setting up semiconductor manufacturing facilities is at the core of that policy.

India wants to produce electronic components locally also because of its concerns over malware, which could be embedded in equipment used by telecommunications, banking and power industries. It also aims to increase the contribution of manufacturing to the country's gross domestic product to 20% by 2020 from about 16% now.

Electronic-product manufacturers have long stayed away from building full-fledged factories in India due to a lack of semiconductor makers within the country. Most of them assemble products at local units using imported parts.

The Tower-IBM-Jaypee consortium proposes to invest 263 billion rupees ($4.14 billion) to set up a facility at Noida, on the outskirts of New Delhi. IBM, the technology partner, will hold a 5% equity, while Tower will have a 10% stake, according to the proposal, a copy of which is seen by The Wall Street Journal.

The second group proposes to invest 252.50 billion rupees for a facility at Prantij in the western Indian state of Gujarat. STMicroelectronics will hold a 10% equity stake in the unit. SilTerra Malaysia Sdn will also be a part of that group, according to the proposal.

Both proposals are for manufacturing 40,000 wafers of 300-millimeter size a month.

 

[Ammyy]

India Gives Initial Approval for Two Semiconductor Factories

India need to be master in this field ....

 

[Abhishek_]

Indian firms get FDA approval for 110 generic drugs

Drugmakers from India, the biggest overseas source of medicines sold in the US, have got more than 100 generic drug approvals from the American health regulator FDA this year so far.

This has taken India’s share in the Original Abbreviated New Drug Application (ANDA) approvals to nearly 40 per cent in the US market so far in 2013, even as Indian companies are increasingly coming under the regulatory scanner here.

Since the beginning of 2013, the US Food and Drug Administration (FDA) has approved nearly 290 ANDAs allowing pharmaceutical firms to manufacture and sell generic drugs as a safe, effective and low-cost alternative to the Americans.

At least 110 of these approved applications are from the Indian companies, or entities owned or controlled by an Indian firm, the FDA data showed.

These companies include entities belonging to Sun Pharma group, Lupin, Aurobindo Pharma, Zydus, Glenmark, Dr Reddy’s, Emcure, Wockhardt, Torrent, Claris, Alkem, Ipca, Cipla, Famy Care, Natco, Hetero and Alembic.

The US market is home to generic drug spending of about USD 300 billion every year and India produces nearly 40 per cent of generic and over-the-counter products, while its share in the finished dosage medicine segment is about 10 per cent.

While the FDA has stepped up its efforts to ensure that only good quality medicines reach the American shores, the demand for generic drugs is surging under President Barack Obama’s healthcare programme.

With over 150 FDA-approved plants, including facilities run by MNCs, India shipped pharmaceutical products worth over USD 4 billion to the United States in 2012, year clocking a growth of around 30 per cent from the previous year.

Indian companies have tapped the US market by focusing on opportunities in plain-vanilla generics segment. However, many continue to improve their product offerings and look at alternative avenues to generate higher margins.

These include difficult-to-make products having technological entry barriers, as also niche products that require dedicated facilities and clinical trials and are not economically viable for many generic players.

Lupin was the top Indian drug seller in the American market last year by prescriptions, followed by Dr Reddy’s, Cadila Healthcare and Aurobindo Pharma, according to data compiled by IMS Health.

As the market for generic drugs, which usually sell at a fraction of cost to the original drugs, grows bigger with an estimated USD 100 billion worth medicines going off-patent over next 5 years, FDA has stepped up its inspections as well.

The new US laws requires FDA to inspect overseas plants on the same schedule as domestic facilities, and to bring an end to its big backlog of drug applications within 5 years.

Indian firms get FDA approval for 110 generic drugs - The Hindu

 

[[Bregs]]

India pharma companies are going to have bulk share of the drugs going off patent in next 4 years and this sector will see huge employment generation as well

 

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Govt clears Rs 2.19 lakh crore IT investment region in AP

The government today approved the proposal to set up an Information Technology Investment Region (ITIR) near Hyderabad which envisages spending of about Rs 2.19 lakh crore and generation of nearly 15 lakh direct jobs.

"The Cabinet Committee on Economic Affairs has approved setting up of ITIR near Hyderabad subject to fulfilling certain conditions...The total investment for the ITIR will be about Rs 2.19 lakh crore," Information and Broadcasting Minister Manish Tiwari told reporters here after the CCEA meeting.

Of the total investment, the IT/ITeS sector is to attract investments of Rs 1.18 lakh crore and the electronic hardware manufacturing (EHM) sector of Rs 1.01 lakh crore, according to an official release.

The ITIR is expected to generate direct employment of 14.8 lakh and indirect employment of 55.9 lakh, it added.

The major investments will be from public-private partnerships.

"Government of India has also proposed upgradation of three radial roads and extension of the metro rail from Falaknuma to Shamshabad international airport at total cost of Rs 3,275 crore," it said.

The Andhra Pradesh government has delineated an area of 202 sq km for the proposed ITIR in three clusters - Cyberabad Development Area and its surroundings, Hyderabad Airport Development area and Maheshwaram in the south of Hyderabad and Uppal and Pocharam areas in eastern Hyderabad.

The ITIR will be implemented in two phases. Phase I will from 2013 to 2018 and Phase II will be from 2018 to 2038, the statement said.

It is expected to develop into a key industrial region for IT, ITeS and electronic hardware manufacturing sectors.

Special consideration will be given to accommodate small and medium enterprises (SMEs) in the proposed ITIR.

Cabinet approves Rs 37,230 crore refinery project in poll-bound Rajasthan

The government, on Friday, gave its approval for setting up a Rs. 37,299-crore refinery-cum-petrochemical complex by Hindustan Petroleum Corporation Limited (HPCL) in Rajasthan. HPCL will set up the greenfield project in Barmer district of Rajasthan in a joint venture with the State Government.

Information and Broadcasting Minister Manish Tewari told reporters here that the project cost was proposed to be sourced with a debt-equity ratio of 1.5:1. Total equity component is Rs. 14,892 crore, and the debt Rs. 22,338 crore.

HPCL is to hold up to 74 per cent stake in the project, while the balance will be with Rajasthan government. HPCL's equity contribution is Rs. 11,020 crore at 74 per cent equity and the Rajasthan Government's equity contribution is Rs. 3,872 crore at 26 per cent. The Rajasthan Government has also agreed to provide an interest-free loan of Rs. 3,736 crore every year for 15 years from the date of commencement of production. The loan is to be repaid by the joint venture in equal annual instalments from 16th year, after commercial production commences for the next 15 years.

HPCL will have the marketing rights, including first right of refusal in respect of uplifting and purchase of all products (including petrochemials), which would be produced by the refinery. The refinery, which is planned to go on stream in four years, will source half its crude oil needs from Cairn's Barmer oilfields, while the remainder will be imported.

 

[Abhishek_]

Bharat Forge gets FIPB nod to sell stake in defence unit

The Foreign Investment Promotion Board (FIPB) has given its nod to Bharat Forge’s proposal to sell 26 per cent equity stake in its defence venture to Elbit Systems Land and C41 Ltd, an Israeli company.


Bharat Forge would hold 74 per cent equity in BF Elbit Advanced Systems, its defence subsidiary set up last year.

BF Elbit Advanced Systems would develop, assemble and manufacture defence systems, particularly artillery guns, mortar gun systems and ammunition and would supply them to the Defence Ministry or other entities for defence, internal security, homeland security, informed sources said here.
Baba Kalyani

Baba Kalyani-promoted Bharat Forge is a global forging conglomerate with capacity of 750,000 tonnes per annum, and has been a defence supplier for a long time.

The Israeli company would bring in technology and system integration capabilities. The cooperation between Elbit and Bharat Forge would address Indian defence requirements.

Bharat Forge has been in the domestic defence business for the past three decades.

With the BF Elbit production facility in its fold, the group would manufacture artillery systems, including naval guns, and upgrade armoured systems, including change of barrels and ordnance, and manufacture various ammunition shells.

Bharat Forge gets FIPB nod to sell stake in defence unit - The Hindu