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 Defence Ministry relaxes rules for exporting components
National

Defence Ministry relaxes rules for exporting components

Agency News

New Delhi, Oct 24 : Giving a major push to defence exports, Defence Minister Rajnath Singh on Thursday approved issuance of two Open General Export Licences (OGELs) for export of certain parts and components and intra-company transfer of technology to select countries that include Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico.

The move will give a boost to defence exports and enhance ease of doing business. The application for grant of OGEL will be considered by Department of Defence Production (DPP) on a case-to-case basis, Defence Ministry said.

The development came after the DPP held extensive consultations with various stakeholders and formulated the policy. For acquiring the licences, it will be mandatory for the applicant to have Import-Export certificate.

The items permitted under OGEL includes components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items. Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this licence, the ministry said.

The transfer of technology to the countries is subject to the condition that the export is an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or subsidiaries of the foreign parent company, it added.

The OGEL is a one-time export licence to be granted to a company for a specific period of two years initially. India has made significant strides in improving its defence exports. These have grown seven-fold over the last two years and reached Rs 10,500 crore in 2018-19.(UNI)