Tag Archives: Defence manufacturing

Steps for smooth entry of private players in Defence manufacturing 

Newsroom24x7 Network

New Delhi: The NDA Government at the Centre led by Prime Minister Narendra Modi has taken major policy initiatives to ease the entry of private sector in defence manufacturing.

To allow smooth entry of private players in the defence manufacturing sector, the Foreign Direct Investment (FDI) Policy in defence sector was reviewed in June 2016, and accordingly, FDI up to 49% is allowed under automatic route and above 49% under Government route wherever it is likely to result in access to modern technology or for other reasons to be recorded. To further the ease of process of approvals, the Government has abolished Foreign Investment Promotion Board (FIPB).

The work of granting Government approvals for Foreign Investment under the extant FDI Policy has been entrusted to the concerned Administrative Ministries / Departments.
The parts/components, casting and forgings of defence equipment have been excluded from the purview of industrial licensing under Industries (Development & Regulation) [IDR] Act, 1951. Initial validity of industrial licence for defence has been revised to fifteen years, further extendable upto eighteen years for existing as well as future licenses under IDR Act.

Since the opening of Defence Industry Sector for Private Sector Participation in 2001, the Government has issued 342 Industrial Licenses to 205 Indian Companies. The Licenses have been issued with the major conditions such as:

• Adequate safety & security procedure would need to be put in place by the licensee. The Companies shall comply with the security guidelines applicable to them based on the security categorization indicated in the licence.
• The defence items produced by such companies will primarily be sold to the Ministry of Defence. However, they can also be sold to other Government Entities under the control of Ministry of Home Affairs (MHA), Public Sector Undertakings, State Governments and other different Licensee Companies without the approval of Department of Defence Production (DDP).
• The Companies shall furnish Half-Yearly Returns regarding details of items produced and entities to whom sold in the prescribed proforma to the Department of Industrial Policy & Promotion (DIPP) and Department of Defence Production.
Till date, 66 Licensed Companies covering 109 Licenses have reported commencement of production.

Under the provisions of Security Manual, the Companies that have reported commencement of production are security audited by Intelligence Agencies once in two years.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Ram Kumar Kashyap in Rajya Sabha today.

India and Germany hold talks to expand Defence cooperation

Newsroom24x7 Desk

Federal Defence Minister of Germany, Dr. (Mrs.) Ursula von der Leyen called on Prime Minister Narendra Modi, in New Delhi on 27 May  2015.
Federal Defence Minister of Germany, Dr. (Mrs.) Ursula von der Leyen called on Prime Minister Narendra Modi, in New Delhi on 27 May 2015.

New Delhi: After talks between India and Germany yesterday to expand the Defence Cooperation between the two countries, German Defence Minister Dr. Ursula von der Leyen called on Prime Minister of India Narendra Modi here today.

Talks were held yesterday between the delegation of the two countries led by their respective Defence Ministers. The Indian side was led by Manohar Parrikar and the German side by Dr (Ms) Ursula von der Leyen.

Cooperation between the Armed Forces of the two countries, partnering of Germany in the “Make-in-India” initiative in the Defence sector and supply of state-of-the-art equipment and technology were some of the prominent issues discussed by the two Defence Ministers. Both sides also exchanged their perception with regard to the evolving geo-political events having impact on the security situation.

The German Defence Minister’s visit to New Delhi is taking place close on the heels of the Prime Minister Narendra Modi’s recent highly successful visit to Germany. The visit would also pave the way for German Chancellor Angela Merkel’s visit to India later this year.

Dr Ursula von der Leyen will be visiting the Western Naval Command in Mumbai tomorrow, before concluding her 3 days official visit to India.

During her meeting with the Indian Prime Minister, Dr Ursula conveyed Germany’s keen interest in collaborating with India in Defence technology and equipment, including Defence manufacturing in India, cyber security and maritime cooperation. She conveyed that Chancellor Merkel was looking forward to her visit in October 2015 for the Inter-Governmental Commission meeting as an opportunity to deepen cooperation across all areas of bilateral relations. She mentioned that India’s participation in the Hannover Trade Fair as Partner Country and Prime Minister’s presence at the inauguration had made a visible impact in Germany, and there was a strong interest now in the Make in India mission.

The Prime Minister recalled his visit to Germany and his excellent discussions with Chancellor Merkel and German business leaders. He reiterated that India considered Germany as a vital economic partner, including in areas like skill development and manufacturing. He invited German companies to take advantage of enormous opportunities of defence manufacturing and defence research and development in India. He looked forward to the visit of Chancellor Merkel later in the year.