• भारत सरकारGOVERNMENT OF INDIA
  • रक्षा मंत्रालयMinistry of Defence
  • Screen Reader Access
  • Skip to main content
  • Accessibility Options
  • Text Size: A- A  A+
  • Search
  • हिन्दी मे
    • हिन्दी मे
    • English
  • white blue
Logo
रक्षा उत्पादन विभाग

Department of Defence Production

Government of India
  • Home 
  •  About Us
    •  About DDP
    •  Mission and Vision
    •  Organization Structure
  •  Policies
    •  Defence Production Policy
      •  Draft Defence Production Policy 2018
      •  Defence Production Policy 2011
    •  FDI Policy
    •  Industrial Licensing
    •  Offset Policy (558 kb)
    •  Defence Export Strategy
    •  SoP for issue of Export Authorizations (6759 kb)
    •  Green Channel Policy (5735 kb)
    •  Outsourcing and Vendor Development Guidelines for DPSUs and OFB (198 kb)
    •  Updated SoP for allotment of Proof/ Field Firing Ranges (2383 kb)
    •  OFB Related Policies
    •  Eligibility Criteria for Indian Private Firms (203 kb)
  •  Tenders/RFIs
    •  Indian Army
    •  Indian Navy
    •  Indian Air Force
    •  OFB
    •  BEL
    •  BEML
    •  BDL
    •  GSL
    •  GRSE
    •  HAL
    •  HSL
    •  MIDHANI
    •  MDL
  •  Publications
    •  Defence Acquisition Procedure (DAP) 2020  (11682 kb)
    •  'Make' Procedure (Ch-III of DPP-2020) (373 kb)
    •  Draft Defence Production & Export Promotion Policy - DPEPP 2020
  •  FAQ
  •  Online Services
    •  NOC for Export of Military Stores
    •  Defence Investor Cell
  •  Contact Us
Banner

Frequently Asked Questions (FAQ)

  • Home
  • Frequently Asked Questions (FAQ)

Frequently Asked Questions (FAQ)

  1. FDI Policy
  2. Industrial Licensing
  3. Export Procedure
  4. Offset Policy
  • What are the licensable defence items for which industrial licence is required under various Acts?

Ministry of Home Affairs (MHA) vide its Notification S.O. 1636(E) dated 19.05.2017 clarified that Small Arms and Ammunition (Caliber upto 12.7 mm) would be licensable under Arms Act, 1959/Arms Rules, 2016 for which MHA would be the Licensing Authority. For items viz. tanks and other armoured fighting vehicles, defence aircrafts, spacecrafts, warships of all kinds, arms and ammunition and allied items of defence equipment other than small arms would be licensable under Arms Act, 1959/Arms Rules, 2016 for which Ministry of Commerce & Industry, DPIIT would be the Licensing Authority. The rest of the items which are not mentioned in the above MHA Notification but are mentioned in Press Note No. 3 of 2014 Series would be covered under DPIIT under the Industries (Development & Regulation) Act, 1951. A copy of the Arms Rules, 2016 is available on the websites of Department for Promotion of Industry and Internal Trade (www.dipp.gov.in) and Ministry of Home Affairs (www.mha.nic.in). No IL is required for undertaking manufacturing of the items not listed in the said defence products list.

  • Whether defence industrial license is necessary for the items which have dual use?

Defence industrial license is not necessary for the items which have dual use except those items which are mentioned in the Press Note 1 of 2019 Series dated 01/01/2019 of DPIIT, Ministry of Commerce and Industry and MHA’s Notification S.O. 1636(E) dated 19.05.2017.

  • Whether an industrial licence from defence angle is required for undertaking manufacturing of items such as parts, components, castings, forgings and test equipments etc.?

On perusal of clause (31) and clause (37) of the Arms Rules, 2016 amplifies that manufacturing under the Arms Rules, 2016 is confined to manufacture of a complete firearm or pressure-bearing part or component of a firearm only. All other parts or components, being non pressure-bearing, are out of the ambit of the definition of manufacturing under clause (31). Industrial licence is not required for undertaking manufacturing of items such as parts, components, castings, forgings and test equipments etc for which items are licensable under I(D&R) Act, 1951 of DPIIT.

  • Where a company can apply for obtaining industrial licence for the manufacturing of defence items?

All applications for grant of license for manufacture of Small Arms (caliber upto 12.7 mm) are to be made directly to Ministry of Home Affairs in Form A-6 along with security clearances proforma manually to Under Secretary (Arms Section), Ministry of Home Affairs, Major Dhyan Chand National Stadium, IInd floor, Near India Gate, New Delhi.

All applications for grant of license for manufacture of arms and ammunitions (caliber above 12.7 mm) configured for defence purposes viz. tanks and other armoured fighting vehicles, defence aircrafts, spacecrafts, warships of all kinds, arms and ammunition and allied items of defence equipment other than small arms as indicated in the schedule to the MHA Notification dated 19.05.2017, are to be made to DPIIT in Form A-6 at Industrial License Section, Department for Promotion of Industry and Internal Trade, Udyog Bhawan, New Delhi.

All other applications for the rest of the items which are not mentioned in the MHA Notification dated 19.05.2017 but are mentioned in Press Note No. 3 of 2014 Series are to be made online on ebiz portal provided at DPIIT’s website (www.dipp.nic.in).

  • What is the validity of Industrial Licence granted to a company for manufacture of defence items?

Vide MHA Arms Rules, 2016, the licence granted by MHA and powers delegated to DPIIT under Arms Act, 1959 for manufacturing shall now be valid for the life-time of the licensee company. Vide DPIIT’s Press Note 10 (2015 Series) dated 22/09/2015, the initial validity of Industrial License for defence sector has been revised to 15 years, which is further extendable upto 18 years.

  • Which is the Administrative Ministry for the grant of extension for defence industrial licence? Where should the company apply for extension of defence industrial license?

Ministry of Defence, Department of Defence Production is the Administrative Ministry for grant of extension of Industrial licence under the I(D&R) Act, 1951 to the private sector. The Company may send their IL extension application to Contract Purchase Officer, Department of Defence Production, Ministry of Defence, D(DIP) Section, Sena Bhawan, New Delhi.

  • Whether any security guidelines needs to be followed/adopted after grant of Industrial Licence for manufacture of licensable Defence items?

The Licensed Defence Company in the private sector after obtaining industrial licence is required to follow the security architecture provided in the Security Manual for Licensed Defence Industries available at Department of Defence Production’s website (www.ddpmod.nic.in) based on their categorization.

  • Whether Industrial Licence is required from defence angle for undertaking Maintenance, Repair and Overhaul (MRO) Activities?

Maintenance, Repair and Overhaul (MRO) activities in defence sector may be treated as services and should not be subjected to the industrial licence under IDR Act unless it actually involves manufacturing of any components/sub-assemblies which are licensable and that the product should remain the property of the same customer after MRO operation.

  • Whether an industrial licence is required from defence angle for undertaking upgrades of licensable defence items?

Maintenance, Repair and Overhaul (MRO) activities in defence sector may be treated as services and should not be subjected to the industrial licence under IDR Act unless it actually involves manufacturing of any components/sub-assemblies which are licensable and that the product should remain the property of the same customer after MRO operation.

  • What is the prescribed licence fee for obtaining Industrial Licence?

The licence fee ranges from a minimum of Rs. 5000/- to the maximum of Rs. 50,000/- which is to be paid at the time of grant of license for items falling under Arms Act, 1959.

  • How many defence licenses have been issued by the Government since opening up the defence sector for Indian Private Sector?

Till March, 31, 2020, DPIIT and MHA combined has issued a total of 464 industrial/manufacturing licenses to Indian companies in defence sector.

 

  • Home
  • iDEX
  • IP Facilitation
  • Defence Investor Cell
  • RTI
  • Testing facilities
  • Defence Export Strategy
  • FAQ
  • Industrial Licensing
  • Terms & Conditions
  • Sitemap
  • Accessibility Statement
  • Disclaimer
  • Feedback
  • Archives
  • Website Policies
  • Contact Us
  • Help
Follow us on:
  • Facebook
  • Twitter
Visitor Count : 881804 Last Updated on : 08/01/21

©2018 MAKEININDIADEFENCE.IN | All Right Reserved.

Powered by: DEO(Defence Exhibition Organization)


Website Content Managed by Department of Defence Production

Designed, Developed and Hosted by Department of Defence Production

ToTop