In September 2009, the government had issued a Request for Information (RFI) for 9mm guns. Due to the strict licensing procedures, it was felt that even though India had the ability to manufacture these and more weapons indigenously, the government would buy from an overseas manufacturer. This new policy has been drafted to help the indigenisation.
The draft document is here >>>The policy states that the arms & ammunition can only be sold to the paramilitary forces, defence forces and the state governments. They cannot be sold to the general public and strict monitoring will be required to ensure that these weapons are not diverted. Only large companies able to invest over 50 crores are eligible to apply for a license from the Department of Industrial Policy and Promotion (DIPP). FDI of up to 26% would be permitted and exports would be allowed.
Going over the history of arms manufacturing in India the draft policy also mentioned that currently 95 firms are licensed by the Ministry of Home Affairs for the manufacture of guns (single barrel/double barrel) and 25 firms for the manufacture if cartridges (either blank cartridges or live cartridges or both) upto the quota permitted in their licences.
From http://www.8ak.in
Interesting points to be noted from the draft policy:
It would seem, that unlike the last time around, this time there seems to be a proviso for the private players to be allowed to manufacture & retail "sports weapons" and "NPB weapons" for supply to the civilian market. We may just see the quality of local stuff improving... or is that hoping for too much?8.
a) Manufacture of arms in the private sector may be allowed on limited basis subject to Industrial license to be issued by DIPP.
b) Applications from units in the large scale sector which are capable of producing advanced weapons and investing more than Rs. 50 crore may, with or without FDI upto 26% be considered by DIPP, as the item, ‘arms and ammunition’ is under compulsory licensing. In no case will any fresh licence be issued to any cottage or small scale sector units.
c) Arms and ammunition may be primarily supplied to Central Para Military Forces, Defence and State Governments on tendering basis or exported. Automatic and semi-automatic weapons and all other prohibited Bore weapons will not be allowed to be sold in local market through arms dealers and the same will necessarily have to be supplied to Defence, Central Para Military forces and State Governments on tendering basis or exported.
d) Sports weapons and NPB weapons may be supplied to registered arms dealers for sale to licence holders only.
e) No enhancement in manufacturing quota of existing firms may be allowed.
f) Applications for manufacture of arms and ammunition may be considered by DIPP as per procedure in consultation with MHA. Applications for manufacture of sports weapons may be considered in consultation with Ministry of Youth Affairs and Sports, who may like to consult Sports Authority of India, National Rifle Association of India etc., as deemed fit.
g) DIPP may impose such other conditions as may be deemed fit by them.
h) In cases in which Industrial licences have already been issued by DIPP without concurrence of MHA, MHA may agree to renewal of the industrial licences by DIPP subject to strict conditions that will be imposed at the time of renewal to enable the three firms to take effective steps in accordance with the new policy.
i) The Arms Rules, 1962 empowers every Magistrate and police officer not below the rank of an Inspector to enter and inspect the premises of an arms and ammunition manufacturer to examine the stock and accounts of receipt and disposal of arms and ammunitions. It is proposed to prescribe annual inspection by the DM concerned of all the manufacturing units falling in his jurisdiction and to send a report to Secretary (Home) of the State Government concerned under intimation to MHA.
If this report is true, then we have not gained anything.
Yes, totally embarrassed now. 