(2)[ A licence granted in Form VII shall be valid for the life time of the licensee company:Provided that the licensee shall be required to setup the facility for manufacture or proof test of arms and/or ammunition, recruit technical and administrative staff, develop and proof test proto-types of arms and ammunition, conduct trial runs and any other activity related to the setting up of the facility for the manufacture or proof-test of arms and ammunition, within a period of seven years from the date of grant of a licence:Provided further that the licensing authority may extend the period of seven years by a further period of three years, on the basis of a written representation received from the licensee and after recording reasons for granting such an extension:Provided also that if during the period of seven years or the extended period of three years, as the case may be, the licensee fails to setup the manufacturing or proof-test facility or is unable to take other operating steps required for starting commercial production, the licence shall be suspended or revoked.;] [Substituted by Notification No. G.S.R. 1342(E), dated 27.10.2017 (w.e.f. 15.7.2016).]
