Govt frees rules for defence production

The government on Thursday streamlined the process of industrial licensing for defence equipment and allowed all items, with few exceptions, to be manufactured without permits.

By: ENS Economic Bureau | New Delhi | Published:June 27, 2014 12:52 am

The government on Thursday streamlined the process of industrial licensing for defence equipment and allowed all items, with few exceptions, to be manufactured without permits.

According to a notification issued by the commerce and industry ministry, industrial licences would be required only to make items including tanks and other armoured fighting vehicles; defence aircraft, space aircraft and parts; warships of all kinds; and arms and ammunition and allied items of defence equipment, parts and accessories.

“Items not included in the list would not require industrial licence for defence purpose. Further, it is clarified that dual-use items, having military as well as civilian applications, other than those specially mentioned in the list, would also not require industrial licence for defence angle,” the ministry said in the statement.

Industry chamber CII said that the development will help in attracting investments from private companies in the sector. “This step is important as it would bring more clarity to the procedures and will encourage new entrants into the defence sector. We are also hopeful that the delays in granting / renewing industrial licensing would also be addressed at the earliest,” said Baba N Kalyani, chairman, CII national committee on defence.

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