Nod for private companies to make defence goods

Discussion in 'Defence & Strategic Issues' started by cobra commando, Jun 27, 2014.

  1. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    NEW DELHI: The government's decision on deregulation will give private companies the right to manufacture a number of defence goods. Till 1991 when economic reforms were initiated, the government licensed a bulk of industrial products, including automobiles and white goods. Over the years, the list has been pruned, and now only a handful of industries such as defence, cigarettes, explosives, distillation and brewing of alcoholic drinks and hazardous chemicals require licences. In all other sectors, companies can freely enter and manufacture whatever they want without any restriction on quantity. So far, all defence items required licences, which were tough to come by. The ministry has for long been accused of sitting on applications for years. "Often it took up to five years to get a licence. But those days are over as 55% of the items have been removed from the list," a senior official said. Now, companies won't need a licence to manufacture components, castings and sub-assembly, the official added. In his speech to both Houses of Parliament earlier this month, President Pranab Mukherjee had spoken about encouraging private investment in defence, a theme that ran through the BJP's election campaign. "It shows the government is serious about involving the private sector. There will be more competition, but it gives a chance to many companies to participate in the defence spectrum.


    Read more here:
    Nod for private companies to make defence goods - The Times of India
     
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