NEW DELHI: Defence Innovation Organistaion (DIO) is to be launched as a non-profit company later this month to foster technology development and innovative products with commercial potential for the defence sector, informed sources said.The company is being formed by defence electronics major Bharat Electronics Limited (BEL) and defence aviation major Hindustan Aeronautics Limited (HAL).The Defence Ministry had in December approved the creation of a Defence Innovation Fund (DIF) under which the DIO is being formed. "This was a Ministry of Defence initiative and was tasked to BEL and HAL. The new entity will work under the guidance of the ministry which will provide the ideas and topics for innovation," a BEL source told IANS.The company will fund development of new and innovative products and solutions for India's defence requirements. "BEL and HAL are contributing Rs 5 crore each to Defence Innovation Organisation, a Section 8 company, to promote innovation in defence. The process of selection of the nominee directors is underway.The DIO, in future, may also have some independent directors.

Source: Economic Times April 08, 2017 10:41 UTC