Defence items are covered under compulsory licensing under the IDR Act, 1951, mentioned at Sl. No.37 of the Schedule I of the Act and also included as entry No. 13 of Schedule II of Notification No.S.O.477 (E) dated 25^th July 1991.  Consequent to the decision in 2001 for opening up of the defence sector manufacturing for private sector participation, necessary amendment to the Schedule II of 477 (E) containing list of compulsory licensing items, was carried out vide Notification No. S.O.11(E) dated 3rd January 2002 by substituting, for the words ‘Arms and ammunition, parts and accessories thereof’ the words ‘arms and ammunition and allied items of defence equipment; parts and accessories thereof’.

A list of defence items as finalized by Department of Defence Production, Ministry of Defence, to be read in conjunction with Entry No. 13 of Schedule II of the Notification No. S.O.477(E) dated 25^th July 1991 as amended by Notification No.S.O. 11(E) dated 3^rd January 2002, is Annexed.

Items not included in the list would not require industrial license for defence purposes. Further, it is clarified that dual use items, having military as well as civilian applications, other than those specially mentioned in the list, would also not require Industrial License from Defence angle.

Secretariat for Industrial Assistance, Department of Industrial Policy & Promotion, Ministry of Commerce and Industry, No.-7(3)/2009-IP.Vol III.Dated26^thJune, 2014

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DS