By: Vivek Raghuvanshi
NEW DELHI — After one year of deadlock in India over the issuance of industrial licenses to private sector defense companies, the government has reverted back to a previous arrangement in which the Department of Industrial Policy and Promotion, or DIPP, will grant licenses, in place of the Ministry of Home Affairs, according to a senior Ministry of Defence official.
NEW DELHI — After one year of deadlock in India over the issuance of industrial licenses to private sector defense companies, the government has reverted back to a previous arrangement in which the Department of Industrial Policy and Promotion, or DIPP, will grant licenses, in place of the Ministry of Home Affairs, according to a senior Ministry of Defence official.
However, analysts say the departmental change will do little in improving the private sector production process of defense weapons and could even further add to the confusion.
The change was prompted by delays and confusion over the issuing of licenses, as the Ministry of Home Affairs was the sole entity in charge of granting licenses for the private sector production of weapons.
"While the immediate logjam about the authority competent to issue the licenses has been resolved, other issues have cropped up, largely because of the conditions subject to which DIPP will exercise this authority," said Amit Cowshish, a former financial adviser for the MoD.
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