Mahindra, BAE propose artillery, armor deal

Britain's BAE Systems and Indian automobile major Mahindra and Mahindra may form the first joint venture in India's private defense sector with an overseas partner holding 49 percent.
While foreign partners' direct investments in defense projects here are limited to 26 percent, Mahindra and Mahindra has filed an application with the Indian authorities proposing a joint venture in which it will hold a 51 percent stake, with BAE holding a 49 percent stake.
The new venture would develop artillery, armored vehicles and anti-land mine vehicles for the Indian military. BAE also plans to produce RG-31 land mine-protected vehicles here with Mahindra and Mahindra.
Khutub Hai, chief executive of Mahindra Defence Systems, said he is optimistic the project will be approved.
Hai noted there is a precedent in the state-owned defense sector, where Russia's Irkut and Hindustan Aeronautics have a 50:50 joint venture for the production of a fifth-generation aircraft. However, the Mahindra-BAE joint venture with a 51:49 would be a first for India's private defense sector.
Source: www.defensenews.com