MoD weighs licensing reform; DAP 2020 revision by Nov-end

The government might be considering a more expeditious industrial licensing process to enhance competition and private-sector participation in defence manufacturing.

- BHASWAR KUMAR

Additionally, the revision of the Defence Acquisition Procedure (DAP) 2020 document to streamline the defence procurement policy will be completed by the end of November, a government source told Business Standard.

Speaking at the annual business summit of the Confederation of Indian Industry (CII) in New Delhi, Defence Secretary Rajesh Kumar Singh on Thursday underscored the importance of disruptive reforms in licensing and ease of doing business to remove entry barriers and support grassroots investors. He described the defence industry as the last vestige of the licence Raj, as it continues to have industrial licensing under the Industrial Development and Regulation Act. "Getting a licence, which should take six months, takes one to two years, given the need for clearances from the Department of Defence Production, security clearance from the Ministry of Home Affairs, and approval from the state's Home Department."