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The power to grant licence for defence manufacturing is back with the Department of Industrial Policy and Promotion a few months after the Home Ministry was given the responsibility.
The decision will come as a big relief to defence products manufacturing companies as the process of granting industrial licences had virtually come to a stop since last year when a turf battle on the matter had started between the DIPP and the Home Ministry.
The powers and functions of the Ministry of Home Affairs under the Arms Act have been delegated to DIPP Secretary in respect of defence items included in the Schedule, according to a government notification, said an official release.
“Consequently, the power to grant manufacturing licence in respect of the category of arms and ammunition and defence items as per columns (2) and (3) of Schedule has been delegated to Secretary, DIPP,” the release stated.
This means, now defence products manufacturing companies will give their applications for industrial licences to the DIPP, like they used to, before the powers were transferred to the Home Ministry.
“The Home Ministry has a lot on its plate since it has to look after security concerns of the entire country. It was, therefore, decided by the Centre that the DIPP was best equipped to look after the interests of defence manufacturing,” a government official told BusinessLine .
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