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TMI BlogGuidelines for licensing production of Arms & Ammunitions - with foreign direct investment (FDI) permissible up to 26%X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the Government decision to allow private sector participation up to 100% in the defence industry sector with foreign direct investment (FDI) permissible up to 26%, both subject to licensing as notified vide Press Note No. 4 (2001 series), the following guidelines for licensing production of arms and ammunitions are hereby notified: 1. Licence applications will be considered and licences gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omoters including their financial standing and credentials in the world market. Preference would be given to original equipment manufacturers or design establishments, and companies having a good track record of past supplies to Armed Forces, Space and Atomic energy sectors and having an established R & D base. 7. There would be no minimum capitalization for the FDI. A proper assessment, however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent possible. 10. The capacity norms for production will be provided in the licence based on the application as well as the recommendations of the Ministry of Defence, which will look into existing capacities of similar and allied products. 11. Import of equipment for pre-production activity including development of prototype by the applicant company would be permitted. 12. Adequate safety and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the licensee. Such permission would be for a fixed period and subject to renewals. 14. Purchase preference and price preference may be given to the Public Sector organizations as per guidelines of the Department of Public Enterprises. 15. Arms and ammunition produced by the private manufacturers will be primarily sold to the Ministry of Defence. These items may also be sold to other Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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