The department is the licensing authority for the following products — defense aircraft, warships, body armor, and specialized equipment for military training.
In May , the DPIIT was granted authority to process and grant licenses for the manufacturing of defense items; prior to this, the authority lay with the Ministry of Home Affairs.
Under this provision, industries located within 25 kilometers of the periphery of cities having a population of at least one million, must obtain an industrial license from the federal government. The location of industrial units is subject to appropriate local zoning, land use regulations, as well as environmental regulations in order to maintain ecological discipline.
Once the license is obtained, an industrial undertaking is eligible for the allotment of controlled commodities and for the issuance of an import license for goods required for its construction and operation.
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The initial validity for industrial license for all sectors was extended to 3 years with a provision to grant 2 extensions for two years each.
So the total time for validity of industrial license for commercial production of the defence equipment is 7 years. Hence these were the crucial industries where license is still mandatory before starting the commercial production of the defence equipment in India.
List of Sectors reserved for Public Sectors in India. List of Sectors covered under the Make in India Plan. List of Industries left for Licensing in India Since the inception of the New Economic Policy in ; India opened most of the sectors for the private players and industrial licensing has been abolished for almost all the industries except five. Industrial Licensing in India. Also, every new industrial undertaking has been mandated to obtain a license by the Central Government.
Moreover, a registered or a licensed industrial undertaking is restricted from manufacturing a new article unless the license for new article has been obtained or prior license has been amended to include the article, as the case may be. Presently, an industrial license is required for industries retained under compulsory licensing, the manufacturing of items reserved for the small scale sector by larger units, and when the proposed location attracts restrictions.
The government has reserved certain items for exclusive manufacturing in the small-scale sector. Non-small-scale units can undertake the manufacturing of items reserved for the small scale sector only after obtaining an industrial license. In such cases, the non-small-scale unit is required to undertake an obligation to export 50 percent of the production of small-scale industry SSI reserved items.
This has been done to protect indigenous manufacturers from competitive exotic substitutes so as to ensure a level playing field for domestic manufacturers. With regards to locational limitations, industrial undertakings are free to select the location of their projects.
Industrial licenses, however, are required if the proposed location is within 25 kilometers of the standard urban area limits of 23 Indian cities having a population of at least 1 million. The application for registration has to be made to the Secretary of Industrial Assistance, Central Government. After due consideration, the government then issues the Certificate of Registration. Under section 92 1 of Indian Patent Act, a compulsory license can be granted Suo moto by the Central Government in circumstances of:.
In order to give effect to the paragraph 6 of Doha Declaration which recognizes WTO members with insufficient or no manufacturing capacities in the pharmaceutical sector could face difficulties in making effective use of compulsory license under the TRIPS Agreement, the Indian Patent Act was amended to insert a new provision, section A, on compulsory licensing for manufacturing and exportation of patented pharmaceutical products into any country that does not have sufficient manufacturing capability to address public health problems.
Exportation is allowed mainly to those countries where a compulsory license has been granted where such countries have notified or otherwise allowed the importation of patented pharmaceutical products from India. Under Section of the Indian Patent Act, compulsory license can be issued by the Government on a patented drug for use by the Government. Chopra and Konkan Railway Corp. Under section of the Indian Patent Act, Government can obtain a pending or already granted patent for public use.
In return the Government must pay the patentee royalties as mutually agreed upon between the parties. Any party interested in obtaining the compulsory license may file a request online or on paper via Form 17, along with fees prescribed with the Indian Patent Office.
Under section 87 of the Indian Patent Act, upon filing the application for grant of compulsory license, the Controller at the Indian Patent Office Controller shall analyze the prima facie case made by the applicant against the patentee. The Controller takes into consideration:.
A notice will be issued to the applicant if the Controller is unsatisfied with the request and will provide a statement rejecting the compulsory license. The applicant may request a hearing with the Controller, within a month from the date of notice of rejection.
At the conclusion of the hearing, the Controller will decide the matter. If the matter is decided in favor of the applicant, necessary terms and conditions shall be decided for granting of the compulsory license.
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