Ease of Doing Business

  • Foreign vendors can finalize Indian Offset Partners (IOPs) and offset product details one year prior to the intended offset discharge or undertake the offset activity and submit claims thereafter. Foreign players no longer need to provide all details of their Indian partners at the time of bidding (December, 2015)
    − 100% offset claims filed during the past 2 years as compared to 64% during 2008-2013.
  • Acceptance of Necessity (AoN) validity has been reduced to 6 months from previous one year fast tracking procurements.
  • The list of military stores for the purpose of issuing NOC for export has been notified by the Government to remove ambiguity and to make the process transparent (March, 2015).
  • Therequirement of single largest Indian ownership of 51% of equity has been removed.
  • Alock-in period of three years on equity transfer has been done-away with in FDI for defence.
  • Standard Operating Procedures (SOPs) for issue of NOC for export of military stores has been simplified and specific timelines prescribed. Requirement of Government signed End User Certificate for export of parts and components and other non-sensitive military stores has been removed (July 2015).
  • The provision of ‘in-principle’ approval for exportincorporated in the SOP to enable Indian companies to explore export opportunities in overseas markets.
  • Application for NOC for export of military stores can be made online (November 2015). The maximum processing time has been reduced to 25 days and 70% of the NOCs are issued in 15 days. 241 NOCs were issued in FY 2015-16 as compared to 39 in FY 2013-14.
  • Industrial Licensing has been simplified and can be applied online:
  • A large number of components, parts, subsystems, testing equipment, production equipment excluded from preview of industrial licensing on the Defense Products List.
  • Validity of Industrial Licence granted under the IDR Act has been increased to 15 years from 7 years with a provision to further extend it by 3 years on a case-to-case basis. - 119 industrial licences have been issued to private defence equipment manufacturers during April 2014 to March 2016.
    - Renewable of registration can be carried out on self certification basis. The capacity verification of non-registered firms have been made valid for three years with renewable facility in line with registered firms.
  • A ‘Make in India’ portal for Defence Production (www.makeinindiadefence.com) has been launched. It provides policy and procedural issues relevant for defence manufacturing industry. Test facilities of DPSUs/OFB/DGQA/DGAQA/DRDO/Forces, which can be utilized by the private sector, have been displayed. Investors can also seek clarifications or ask questions related to defence production.
  • e-tendering for procurement has been implemented for various items.