Government streamlines industrial licensing for defence equipment

NEW DELHI: Streamlining the industrial licensing process for defence equipment, the government today said permits won't be needed to manufacture items other than those used in the battleground.

Industrial licenses would be required only to make items such as 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.

According to an official, this clarification would help to attract investments from private companies.

"Items not included in the list would not require industrial license 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 license for defence angle," the Ministry of Commerce and Industry said in a statement.

Defence items are covered under compulsory licensing under the Industries ( Development and Regulation) Act, 1951.

The official said the industry had raised the issue as there was confusion over several dual-use products.

"This clarification will also help in attracting more investments in the sector," the official added.