Manufacturing of Arms

               The Government has notified new Arms Rule-2016 in July, 2016.  The Rules were further liberalised in October 2017 to encourage investments and generation of employment in the field of manufacturing of arms/ammunition and weapon systems, to give boost to the Government’s Make in India Policy.   Under the new rules, the licences granted for manufacturing will be valid for the life time of the licence company and the requirement of renewal every 5 years has been done away with.  Licence fee has been reduced significantly.  Further, single manufacturing licence will be allowed for multi unit facility within the same state or in different states within the country.  An enhancement of capacity up-to 15% of the quantity approved under the licence will not require any further approval by the Government.  The manufacturer will be required to give only prior intimation to the licencing authority.  The new rules are expected to encourage manufacturing activity and facilitate availability of world class weapons to meet the requirements of the armed forces and the police forces.  The liberalised rules are also expected to attract foreign investment in the manufacture of arms and ammunition as part of Make in India programme.