The Telegraph
Friday , June 27 , 2014
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Clarity on defence licensing

New Delhi, June 26: The government has eased the compulsory licensing norm for defence equipment and restricted it to only specified items to boost domestic manufacturing (see chart).

“Items not included in the list would not require industrial licence for defence purposes. 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 from defence angle,” the commerce ministry said.

Some of the items which do not require a permit include equipment used in rescue operations, certain category of bullet-proof vests, parts of warships and aircraft, solutions for personal armour and vehicle armour, and specified test equipment.

Baba N. Kalyani, chairman of the CII’s national committee on defence, said, “This step is important as it would bring more clarity to the procedures and will encourage new entrants into the defence sector.”

“It is important to maintain a fair balance between addressing genuine security concerns and promoting India’s defence industry. Given the opportunity, this industry has the potential to generate large employment opportunities and provide much needed impetus to India’s manufacturing sector leading to its professed goal of self-reliance,” Kalyani, chairman and managing director of Bharat Forge, the flagship company of Kalyani Group, said.