New Delhi: Replying to a question in the Rajya Sabha, Defence Minister A K Antony on Wednesday said that the government is considering to enhance the Foreign Direct Investment (FDI) limit from 26 per cent to 49 per cent in defense sector.
"A discussion paper to enhance the FDI limit is under examination in consultation with the relevant ministries," he said.
"As per the extant policy, participation of the Indian private sector in defence sector is allowed up to 100 per cent with foreign direct investment up to 26 percent. Both are subject to licensing," he added.
Antony said, decisions to allow higher FDI is taken on case-to-case basis by the Cabinet Committee on Security (CCS) if the FDI beyond 26 percent is likely to result in access to
the state-of-art technology.

He stated, a hi-tech coastal scan system developed by Bharat Electronics Limited (BEL) will be set up at 46 locations in the next 18 months.
Replying to a query on the denial of outside postings for diploma holder engineers of Border Road Organization (BRO), the Minister said, "Certain restrictions on outside postings of the engineers have been placed due to shortage of junior engineers in BRO. However, a special recruitment drive is going on and these restrictions will be relaxed soon as the deficiency level comes down."