Rajnath Singh nods to Open General Export Licences to boost defense exports

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


Devdiscourse News Desk | New Delhi | Updated: 24-10-2019 16:30 IST | Created: 24-10-2019 16:30 IST
Rajnath Singh nods to Open General Export Licences to boost defense exports
The quarterly & end of the year report on all the transactions done under OGELs should be submitted to DPP for examination and post-export verification. Image Credit: ANI
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Raksha Mantri Shri Rajnath Singh has approved the issuance of two Open General Export Licences (OGELs) for export of certain parts &components and intra-company transfer of technology to select countries. It will give a boost to defense exports and enhance the ease of doing business.

The application for the grant of OGEL will be considered by the Department of Defence Production (DPP) on a case-to-case basis.

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

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

For acquiring the licenses, the applicant is mandatory to have an Import-Export certificate. The quarterly & end of the year report 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 license.

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.

The OGEL is a one-time export license to be granted to a company for a specific period (two years initially).

India has made significant strides in improving its defense 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 the online clearance of applications. The processing time has been brought down significantly.

(With Inputs from PIB)

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