MoD's Pruned Licence List Brings Clarity
NEW DELHI:In the first signs of the Modi Government meaning business in the defence sector, the long-pending key list of items for which military industrial licences were required was finalised and released by the Commerce and Industry Ministry here on Thursday, which now made it mandatory to have manufacturing permits only for those weapons and systems used in the battlefield.
The long list for which Defence Ministry licence would be required for industrial manufacture included battle tanks, armoured fighting vehicles, military aircraft and parts, warships of all kinds, arms and ammunition, and allied items of defence equipment, parts and accessories. The latest defence list for compulsory licensing, which was kept pending by the previous UPA Government for a decade, has clearly paved the way for many products that were under the small and medium scale industries’ domain freed up from the restrictions. Among the ones removed from the list included components and systems that cannot be used as a standalone weapon or military systems.
The move would help in attracting investment from the private sector for production of those products released from the list.
The defence sector, which was an exclusive government domain for long, was opened up for private sector participation by the previous NDA Government under Atal Behari Vajpayee and the present NDA Government’s move would boost the confidence of the private sector in defence manufacturing.
“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 from the defence angle,” the Ministry of Commerce and Industry said.