Major push to Defence exports as Govt decides on special licences
Open General Export Licences (OGELs) will allow defence exports to Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico.

at 12:22 pm
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New Delhi (NVI): Seeking to give a major push to India’s defence exports, Government on October 24 decided to issue two Open General Export Licences (OGELs) to effect export of certain parts and components and intra-company transfer of technology to select countries.

The countries allowed under the OGELs include Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico. Export of items to a ‘Special Economic Zone’ is not permitted.

The application for grant of OGEL will be considered by Department of Defence Production (DPP) on a case-to-case basis. The OGEL is a one-time export licence to be granted to a company for a specific period, initially for two years.

“It will give a boost to defence exports and enhance ease of doing business,” Defence Minister Rajnath Singh said after taking the decision.

India has made significant strides in improving its 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.

Following a demand by the exporters, the DPP had held extensive consultations with various stakeholders and formulated this OGEL policy and submitted for Raksha Mantri’s approval.

For acquiring the licences, it is mandatory for the applicant to have Import-Export certificate. The quarterly and end of the year reports on all the transactions done under OGELs should be submitted to DPP for examination and post-export verification.

The items permitted under OGEL include 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 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 subsidiary (applicant exporter) to its foreign parent company and/or to subsidiaries of the foreign parent company.