Govt relaxes arms rules to boost indigenisation
Licences granted to manufacturers will be valid for lifetime, says Centre
Promotion (DIPP), under powers delegated to it, for tanks and other armoured fighting vehicles, defence aircraft, space crafts, warships of all kinds, arms and ammunition and allied items of defence equipment other than small arms,” the Home Ministry said in a statement.
The decision comes following a proposal from the Defence Ministry to do away bureaucratic delays. A number of industry leaders had recently conveyed to Defence Minister Nirmala Sitharaman their disappointment over delays in grant of licence for setting up of manufacturing facilities for military equipment and platforms.
The new rules, which came into effect on October 27, are expected to encourage the manufacturing activity and facilitate availability of world-class weapons to meet the requirement of armed forces and police forces in sync with the country’s defence indigenisation programme.
Under the new rules, enhancement of capacity up to 15 per cent of the quantity approved under the licence will not require any further approval by the government. The manufacturer will be required to give only prior intimation to the authority, the statement said.
The licence fee has been reduced significantly. Earlier the licence fee was Rs 500 per firearm which added up to very large sums and was a deterrent to seeking manufacturing licenses. The licence fee will now range from Rs 5,000 to the maximum of Rs 50,000.