India rejects L & T, EADS defense electronics joint venture

A joint venture between Indian systems integrator and infrastructure company, Larsen & Toubro and EADS had been rejected by the Indian government. The reason being that the proposed venture did not meet the government’s foreign equity requirements. The L & T EADS venture was to manufacture supply electronic warfare systems, avionics and radars. “The deal was rejected because it would exceed existing caps on foreign investment rules”, an international news agency said quoting unnamed Larsen & Toubro. There are indications that the two partners may send a revised proposal to the Indian government meeting the investment and equity requirements. So far India has only allowed a partnership between Mahindra Defense Systems and BAE Systems to collaborate in land systems.