The Department of Industrial Policy & Promotion, Ministry of Commerce and Industry (“DIPP”) has increased the initial validity of industrial licenses for the defence sector to 7 (seven) years from erstwhile validity period of 3 (three) years, which was extendable up to 7 (seven) years. This change has been brought about by DIPP’s Press Note No. 5 (2015 Series) dated April 27, 2015 (“Press Note 5”). The Press Note 5 further provides that the initial validity of 7 (seven) years is further extendable up to a period of 3 (three) years for existing as well as future Licenses.
The increase in the validity period will benefit the defence companies as it is a step towards ease of doing business in India with the view to attracting investors.