Login With Google
Defence manufacturing rules eased
Why is it in news?
- The government issued a notification simplifying the process for approval of manufacturing of a range of defence and aerospace equipment and components by private industry, by bringing them under the licensing authority of the Department of Industrial Policy and Promotion (DIPP).
- The notification was issued as a press note by the DIPP, which is under the Ministry of Commerce and Industry.
What notification says? And its impacts
- What notification says?
- This notification, which supersedes DIPP’s earlier press note of June 2014 on this issue, segregates defence items in two categories covered by two different Acts — the Industries (Development and Regulation) Act, 1951, and the Arms Act, 1959.
- Warships included:
- Items are listed in three categories — defence aircraft, warships of all kinds, and allied items of defence equipment.
- The most significant aspect is that warships of all kinds, surface and sub-surface, have been included in the listing.
- Ambitious Strategic Partnership (SP) model:
- The Defence Ministry has formulated an ambitious Strategic Partnership (SP) model under the Defence Procurement Procedure (DPP), covering four specific areas to promote role of private sector in defence manufacturing.
- However, progress on finalising the projects under the SP model has been slow.
- Impacts:
- This would accrue benefits towards Tier-I/Tier-II vendors giving a boost to the small and medium enterprises (SMEs).
- This move is also expected to help foreign Original Equipment Manufacturers (OEM) looking for partnerships with the private sector.
Source
The Hindu