Larsen & Toubro (L&T), the engineering and construction giant, has announced the formation of a joint venture company with Europe's EADS Defense and Security for defense electronics in India.

The new JV company intends to design, develop and manufacture electronic warfare equipment, radars, military avionics and mobile systems for military requirements of Indian customers as well as the world market.

EADS is a global leader in aerospace, defense and related services, and is a subsidiary of Defense Electronics (DE), a supplier of defense solutions worldwide.

According to reports, the new company will initially invest Rs 100 crore for building its first manufacturing unit at Talegaon near Pune.

Further, the new company can have a foreign holding of up to 26 per cent under the norms for defence-equipment manufacturers. However, The JV’s formation is subject to approval by the Indian government.