Green Flag to Private Manufacturers for defence goods
The Private sector is coming into picture for manufacturing of defence goods, as the green flag is given by the new government. And the most important part is, President of India Mr. Pranab Mukharjee is showing up an Interest and encouraging private sector investment to dive in defence goods.
Getting defence license was not the easiest task for private manufacturers . The government was continually being accused for inactive response on applications for the same not less than 5 years.
But the situation is not similar today. Nearly 55% to 60% items are now removed from the list, According to government official reports. So the items that are not included in the list would not require a license for manufacturing of those defence goods the commerce and industry minister said.
Now the license is not mandatory for Companies to manufacture components, castings and sub-assembly parts, officials of Industrial policy & promotion added in their report.
Companies will get right to manufacture a number of defence goods due governments decision on deregulation for the private sector.
The rest of the sectors are also not kept deprived of this deregulation benefits. Companies can openly dive in and manufacture whatever they want without any restriction on quantity ofcorse not compromising on quality.
Reference: TOI, ET