The government has clarified that licences won’t be required for manufacturing items for the defence sector except those used in the battleground such as tanks and warships. This clarification, issued in an official release, will also help attract more investments in the sector; the industry has complained of confusion over several dual-use products, an official statement said.
The government had thrown open the Defence sector to the private sector during the tenure of the previous National Democratic Alliance government in 2001 and approved six licences in 2002 following an amended notification. As a result, five licences were granted to Larsen and Toubro and one to Mahindra and Mahindra.
“Items not included in the list would not require industrial licence 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 statement said.
The government has already asked private sector entrants into the Defence sector to set up foolproof security systems on the basis of those at government ordnance factories.