Authority Holding Sealed Particulars

April 19, 2023

Defence Minister Rajnath Singh recently approved a proposal for industry-friendly reforms related to the Authority Holding Sealed Particulars (AHSP).

What is AHSP?

The AHSP is responsible for generating, maintaining, updating, or declaring obsolete the entire history and technical information of defence products. So far, the Directorate General of Quality Assurance (DGQA) was the AHSP for majority of the defence items that were designed and developed by the various defence public sector undertakings and private industries.

Why are reforms necessary?

The existing procedures related to the AHSP have bottlenecks. Liberalization of the AHSP procedures to make them more industry friendly will ensure timely improvements in defence products and technologies as per the changing times. It will allow defence companies to own and account for their final designs and specifications as AHSP. This will enable them to develop products, systems, sub-systems, and components using their own indigenous capabilities (excluding critical stores) more quickly and efficiently.

Simplified mechanism for decision-making

In the event of any change in the sealed particulars, a simplified mechanism representing all stakeholders concerned, including the industry, will make a decision. The DGQA will notify the detailed procedure within two months.

Examination and rationalization of AHSPs by DGQA

The DGQA has been directed to probe all AHSPs and rationalize the entire list within two months. The ministry has advised the DGQA to transfer the AHSP to the industry at the earliest. This move is another significant step taken by the Indian government to encourage ease of doing business.

Aim of the reforms

The government’s aim behind these reforms is to enable timely improvements in products and technologies based on the changing situations. With these industry-friendly reforms, the Indian defence companies will be able to make the necessary changes and improvements to their products, which will help boost their overall competitiveness. The reforms will create a conducive environment for the industry to innovate and make significant contributions to the defence sector, leading to the growth of the Indian defence industry.

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