Defence sector norms eased by Govt
21/10/2014 12:37
In a bid to boost investments in the country’s defence sector, the Modi government on Monday eased licensing norms by giving the go-ahead to private players in the sector to sell equipment to state-run firms without prior approval of the defence ministry.
“The licencee shall be allowed to sell defence items to government entities under the control of ministry of home affairs, state governments, PSUs and other valid defence licensed companies without prior approval of the department of defence production," a commerce and industry ministry statement said.
However, the licensee will still need to take permission from the department of defence production (DoDP) in case the sale of the defence equipment is to be made to any other entity.
“However, for sale of the item to any other entity, the licensee shall take prior permission from DoDP”, the statement added.
Further, in a bid to prompt more companies to enter the defence sector; the DoDP also eased the norms on annual capacity for defence items for industrial licences. Licensees will be required to submit half yearly production returns to DoDP and the department of industrial policy and promotion (DIPP).
The FDI cap in the sector was recently raised to 49 per cent from 26 per cent.
21/10/2014 12:37
In a bid to boost investments in the country’s defence sector, the Modi government on Monday eased licensing norms by giving the go-ahead to private players in the sector to sell equipment to state-run firms without prior approval of the defence ministry.
“The licencee shall be allowed to sell defence items to government entities under the control of ministry of home affairs, state governments, PSUs and other valid defence licensed companies without prior approval of the department of defence production," a commerce and industry ministry statement said.
However, the licensee will still need to take permission from the department of defence production (DoDP) in case the sale of the defence equipment is to be made to any other entity.
“However, for sale of the item to any other entity, the licensee shall take prior permission from DoDP”, the statement added.
Further, in a bid to prompt more companies to enter the defence sector; the DoDP also eased the norms on annual capacity for defence items for industrial licences. Licensees will be required to submit half yearly production returns to DoDP and the department of industrial policy and promotion (DIPP).
The FDI cap in the sector was recently raised to 49 per cent from 26 per cent.
