NEW DELHI:
To improve ‘ease of doing business’ and boost defence manufacturing, government today decided to increase the validity of industrial licence to 15 years with a provision to further extend by up to 18 years.
The Commerce and Industry Ministry said this is being done in view of the long gestation period of defence contracts to mature.
Currently, the initial validity of industrial licence for defence sector is seven years, further extendable up to 10 years.
“…The initial validity of industrial license for defence sector is being revised to 15 years, further extendable up to 18 years for existing as well as future licenses,” the Ministry said in a statement.
However, it said, in case of licence already expired, the licensee has to apply afresh for issue of license.
The government has said it wants to bring India’s rank within top 50 in terms of ‘ease of doing business’, from 142nd currently, according to the last World Bank report.
Last year, the government raised the foreign direct investment policy in the defence sector to 49 per cent, from the earlier 26 per cent. (PTI)
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