In a move expected to rake in investments into the defence sector, the government on Monday allowed private defence manufacturing firms to sell equipment to state-run entities without prior approval.
However, permission would be required to sell to non-government entities, the Ministry of Commerce and Industry said.
“The Licensee shall be allowed to sell defence items to government entities under the control of Ministry of Home Affairs, State governments, Public Sector Undertakings and other valid Defence Licensed Companies without approval of the Department of Defence Production [DoDP],” the Ministry said in a communiqué on Monday.
“However, for sale of the items to any other entity, the Licensee shall take permission from the DoPD,” it said.
The Ministry also removed the cap on the annual production capacity for defence-related equipment. However, licensed firms would be required to submit their production returns to the government every six months.