Rajnath Singh approves issuance of two OGELs for export of certain parts and components

Defence Minister Rajnath Singh has approved the 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 decision will give a boost to defence exports and enhance the ease of doing business. The application for 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 Defence Minister’s approval.

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

For acquiring the licences, the applicant is mandatory to have an Import-Export certificate. The quarterly and 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 includes components of ammunition and fuse setting device without energetic and explosive material, firing control and related ing and warning equipment and 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 licence.

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 licence to be granted to a company for a specific period which is two years initially.

India has made significant strides in improving its defence exports. These have grown seven-fold over the last two years and reached to 10 thousand 500 crore rupees in 2018-19. This has been made possible due to the reforms brought in the standard operating procedure and ushering in a portal for online clearance of applications. The processing time has been brought down significantly.