Green Channel Policy
Green Channel Policy
The Ministry of Defence launched the Green Channel Policy as a part of Make In India Initiative. This policy allows manufactures to obtain “Green Channel Certificate” which will self-certify their products supplied to the Defence Services. In this article, we look at the Green Channel Policy in detail.
Eligibility Criteria
The following firms having an annual turnover of Rs.1000 crore during the last three years are eligible for obtaining green channel status/certificate:
- Indian Firms
- Public Sector Undertakings
- Foreign firms with manufacturing facility
- Original Equipment Manufacturer (OEM) outsourcing the products in their own name or brand.
- Original Equipment Manufacturer having fully owned Indian subsidiary and holding manufacturing facility in India.
Application Process
The firms which meet the above-mentioned criteria will be considered for green channel certificate, or status and their products will be allowed to self-certify.
All eligible firms are required to submit the application form with mandatory documents in the prescribed format to apply for Green Channel Certificate”. The grant of green channel certificate will provide the status of registration and acceptance of the application by the Ministry of Defense.
Note: The application form for obtaining Green Channel Certificate is given below:
Screenshot from 2019-11-26 13-52-06Approval Process
The concerned authority of Directorate General of Quality Assurance (DGQA) and members from Principal Directorate, Procurement Directorate, User Directorate and any other member responsible under this policy will assess the firm eligibility for Green Channel Certificate.
The selection committee considers all issues related to the Green Channel policy, including the grant of green channel certificate and the items covered under the green channel policy. The Committee will verify the production line and inspect the product.
The details of green channel firm or items along with certification number and its validity will be updated periodically on the website of DGQA or DGAQA. Also, the green channel status of the firm or items will be reviewed by the Committee as required.
Registration Fee
The eligible firm should submit a demand draft of Rs.100 as onetime non-refundable registration fee in respect of Committee of Defence Account for obtaining green channel certification.
Green Channel Bank Guarantee
Any eligible firms granted with Green Channel Certificates will be required to deposit a bank guarantee of Rs.50 lakhs as the security deposit.
Validity of Green Channel Certificate
The Green Channel Certificate will be valid for 5 years from the date of issue.
Renewal of Green Channel Certificate
The application for the green channel certificate has to be made within 90 days before the expiry of the validity. The status of the original green channel would be valid only by providing that the renewal has been implemented 90 days before from the expiration date and the amount of Rs.50 lakhs of bank guarantee has been required.
Note: The renewal will be performed based on the positive feedback from the user.
Penalty
All the customer complaints will be brought to the notice of the Committee. In case of any defects occurred during the investigation, the Green Channel Committee will impose a penalty of Rs.50 lakhs and removal of the company from the green channel list for a period of 3 years. The Directorate General of Quality Assurance (DGQA) allows green channel firms for participation in defect investigations with respect to their products as and when required.
