Govt expecting 5000 cr annually from stake sale-18,000 from land sale: Defence Fund

New Delhi: The government of India wants PSU divestment, and land sale proceeds for Defence Fund. It is expecting Rs 5000 and Rs 18,000 crore annually from stake sales and land sales (over five years) simultaneously sources said.

As the Government of India is not in favour of the 15th finance commission recommendations of using the consolidated fund. Already, the Finance Commission has cut grants by the Centre to the states by 1 percent, to help the Centre raise Rs 1.53 lakh crore for the Defence Fund, according to CNBC 

Recently on Monday, Shri Rajnath Singh, Union Defence Minister mentioned the plans to spend USD 130 billion on military modernisation in the next five years, as he also mentioned the recent order of 83 indigenously designed and developed Light Combat Aircraft MK 1A, Tejas, worth Rs 48,000 crore, awarded to Hindustan Aeronautics Limited (HAL) during the recently held Aero India 2021.

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