In order to boost indigenisation in manufacturing arms, the government has liberalised Arms Rules by doing away with renewal of licence every five year. Now, licenses once issued to arms manufactures will be valid for life time.
This change is said to strengthen the 'Make in India' initiative that will encourage investment in the manufacturing of arms, ammunition and weapon systems in the country.
The condition that small arms and light weapons produced by a manufacturer should be sold to the central government or the state governments with the prior approval of the Home Ministry has also been done away with.
"The liberalised rules will apply to licences granted by the Home Ministry for small arms and ammunition, and those granted by the Department of Industrial Policy and Promotion (DIPP), under powers delegated to it, for tanks and other armoured fighting vehicles, defence aircraft, space crafts, warships of all kinds, arms and ammunition and allied items of defence equipment other than small arms," the Home Ministry said in a statement.
The decision comes following a proposal from the Defence Ministry to do away bureaucratic delays. A number of industry leaders had recently conveyed to Defence Minister Nirmala Sitharaman their disappointment over delays in grant of licence for setting up of manufacturing facilities for military equipment and platforms.
The new rules, which came into effect on October 27, are expected to encourage the manufacturing activity and facilitate availability of world-class weapons to meet the requirement of armed forces and police forces in sync with the country's defence indigenisation programme.
Under the new rules, enhancement of capacity up to 15 per cent of the quantity approved under the licence will not require any further approval by the government. The manufacturer will be required to give only prior intimation to the authority, the statement said.
The licence fee has been reduced significantly. Earlier the licence fee was Rs 500 per firearm which added up to very large sums and was a deterrent to seeking manufacturing licenses. The licence fee will now range from Rs 5,000 to the maximum of Rs 50,000.
FOR EASY BUSINESS
- The new rules, which came into effect on October 27, is expected to encourage ‘Make in India’ initiative. The step has been taken to bring in more investors in the arms manufacturing field.
- The earlier clause that small arms and light weapons produced by a manufacturer should be sold to government with the prior approval of the Home Ministry has also been relaxed.
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