Boost To Defence Exports: Defence Minister Rajnath Singh Approves Open General Export Licences For Firms

Towards the target of achieving Rs 35,000 crore in defence exports by 2024, the Defence Minister Rajnath Singh today (24 October) approved issuance of two Open General Export Licences (OGELs) for export of certain parts and components and intra-company transfer of technology to select countries.

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

The items permitted under OGEL includes components of ammunition and fuse setting device without energetic and explosive material, firing control and related alerting and warning equipment and related systems 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 OGEL is a one-time export licence to be granted to a company for a specific period, currently set to two years. The application for grant of OGEL will be considered by the Department of Defence Production (DPP) on a case-to-case basis.

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 to subsidiaries of the foreign parent company.

India’s defence exports have grown seven-fold over the last two years, reaching Rs 10,500 crore in 2018-19. Several reforms, like a standard operating procedure and ushering in a portal for online clearance of applications have contribute to the growth.