Govt eases norms for defence sector companies

Bs_logoImage
Press Trust of India New Delhi
Last Updated : Oct 20 2014 | 7:30 PM IST
To attract investments in the defence, the government today allowed private companies in the segment to sell equipment to state-run entities without prior approval of the Ministry of Defence.
"The licencee shall be allowed to sell defence items to government entities under the control of Ministry of Home Affairs, state governments, PSUs and other valid defence licensed companies without prior approval of the Department of Defence Production," a Commerce and Industry Ministry statement said.
However, it said, for sale of the items to any other entity, the licencee shall take prior permission from the Department of Defence Production (DoDp).
The government has also decided to deregulate the annual capacity for production of defence items by industrial licencees with the condition that licencees shall submit half yearly production returns to the Department of Industrial Policy and Promotion and DoDP.
Further, it said that as a measure of ease of doing business, two extensions of two years each in the initial validity of three years of the industrial license would be allowed up to seven years.
The steps would help India in improving its ranking the ease of doing business and attract investments in the defence sector.
According to a World Bank report, India has slipped three positions to 134th spot in the latest 'ease of doing business' list, which is topped by Singapore.

You’ve hit your limit of 5 free articles this month.
Subscribe now for unlimited access.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 20 2014 | 7:30 PM IST