Sunday, February 16, 2025

194 Defence Industrial Licenses Issued To Private Players; Rajya Sabha Response Reveals

By Staff Correspondent

In the last five years, a total of 194 Industrial Licenses have been issued to private companies in the Defence sector for manufacturing of items like ammunition, artillery guns, howitzers, air defence guns, UAVs, destroyers, frigates, night vision devices, ballistic protection items, radars, optoelectronic devices etc.

The licensing authorities grant the license to manufacture defence equipment, namely, Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Home Affairs under Industries (Development & Regulation) Act and Arms Act, respectively, in consultation with the Ministry of Defence.

Further, to provide autonomy, enhance efficiency, and unleash new growth potential in the Ordnance Factories, the Government has corporatised OFB and converted it into seven new Defence Public Sector Undertakings (DPSUs). All new Defence PSUs have become operational from 1st October 2021.

The Government has decided to grandfather the indents/orders worth more than Rs 62,000 crore, pending with the OFB post corporatisation, to ensure continuity in the supply of strategic arms and ammunitions to the services.
Moreover, two positive indigenisation lists for a total of 209 items have also been notified by the Government with an embargo on the import beyond the timeline indicated against each of them.

There has been a decline in the percentage of capital expenditure on the procurement of defence equipment from foreign vendors from 48% in 2018-19 to 36% in 2020-21.

This information was given by Raksha Rajya Mantri Ajay Bhatt in a written reply to Saroj Pandey in Rajya Sabha today.





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