Engineering and construction major Larsen and Toubro
and Tata Power have applied for the 'Rashtriya Udyog Ratna'
status that would allow them to bid for defence contracts
on a par with public sector defence companies.
Rashtriya status will enable us to bid for defence contracts
and we will be treated on par with defence PSUs,"
company sources said, adding that applications made by
the companies are pending with a special committee set
up by the defence ministry.
two companies have bagged contracts worth Rs172 crore
for supply of Pinaka multi-barrel rocket launchers for
two regiments of the Indian Army.
Defence Research and Development Organisation (DRDO) has
roped in L&T for developing prototypes for various
projects. It has also strong capabilities in composites
for aerospace applications.
Power's strategic electronics division has recently received
seven licences for various defence projects recently for
electronic warfare, naval combat and air defence.
defence ministry panel is expected to give its final decision
by this fiscal, top officials of L&T and Tata Power
government move to allow private companies to participate
in defence production followed the recommendations of
the Vijay Kelkar Committee and the constitutional amendment
move also opens up contracts worth over Rs17,000 crore,
currently being awarded to the Ordnance Factory Board
and eight other defence PSUs.