Indian Economy News

Boost to defence manufacturing, DIPP clears licenses worth Rs 613 Crore

Pune: The Department of Industrial Policy and Promotion(DIPP) has so far issued 73 industrial licenses in defence sector during last one year (since June 2014), against 50 License granted during 2011 to May 2014.

A press release issued by the ministry of commerce and industry states that these include 16 proposals with proposed investment of Rs 613 crores, cleared in recent Licensing Committee meeting chaired by Secretary, DIPP, held on June 10.

The proposals cleared in last Licensing Committee meeting included applications from major players like Pipavav, Tatas, Samtel Thales, Solar Industries, Titagarh, Wagons, Premier Explosives etc. Many of these proposals were pending in government for last several years.

Recently, government had increased the initial validity period of Industrial License for Defence Sector to seven years from earlier three years, further extendable up to three years, in view of the long gestation period of defence contracts to mature. In addition to this, the government has taken a series of measures to improve the Ease of Doing Business in India. The government now expects that these measures will give a boost to the private participation in the vast opportunities available for defence manufacturing in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.