Union of India's Establishment Approves Two Open General Export Licences for Defence Exports

[Hindustani78]

Delhi
PIB - PTI

24-October, 2019 16:15 IST

Union of India's Establishment Approves two Open General Export Licences in a Major Push for Defence Exports.

Union of India's Establishment has Approved Issuance of Two Open General Export Licences (OGELs) for Export of Certain Parts & Components and Intra-Company Transfer of Technology to Select Countries. This will Give a Boost to Defence Exports and Enhance Ease of Doing Business.The Application for Grant of Open General Export Licence (OGEL) will be Considered by Union of India's Establishment, Department of Defence Production (DPP) on a Case-to-Case Basis.

Following a Demand by the Exporters to Various Countries around the Globe, Union of India's Establishment, Department of Defence Production (DPP) held Extensive Consultations with Various Stakeholders of Defense Research Development Organisation (DRDO) and Formulated this Open General Export Licence (OGEL) Policy and Submitted for Approval.

Export of Defence Related items to a ‘Special Economic Zone’ is not Permitted.

For Acquiring the Licences, the Applicant is Mandatory to have Import-Export Certificate. The Quarterly & End of the Year Reports on All the Transactions Done under Open General Export Licences (OGELs) Should be Submitted to Union of India's Establishment, Department of Defence Production (DPP) for Examination and Post-Export Verification.

The Defence Related Items Permitted Under Open General Export Licence (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 Unmanned Aerial Vehicles (UAVs) are Excluded Under this Licence.

The Transfer of Technology to the Countries is Subject to the Condition that the Export is An Intra-Company transfer from An Indian Defence Subsidiary (Applicant Exporter) to the Foreign Parent Company and/or to Subsidiaries of the Foreign Parent Company of the Friendly Establishment with whom Military Accords are there by the Union of India's Establishment.

The Open General Export Licence (OGEL) is a One-Time Export Licence to be Granted to a Company for a Specific Period (two years initially).

Union of India has Made Significant Strides in improving the Defence Exports. These have Grown Seven-Fold over the last Two Years and Reached to Rs 10,500 crore in 2018-19.

This has been Made Possible due to the Reforms brought in the Standard Operating Procedure and Ushering in a Portal for Online Clearance of Applications. The Processing Time has been Brought Down Significantly.