Explosives (Second Amendment) Rules, 2026: New PESO Licence and R&D Requirements

A business developing explosives for defence applications may already have a research facility, qualified technical staff and an approved project. But does that mean it can manufacture and test explosives without additional permission? Not necessarily.

The Central Government has amended the Explosives Rules, 2008, through the Explosives (Second Amendment) Rules, 2026, notified under G.S.R. 887(E), dated 14 October 2026. The changes are particularly important for companies involved in explosives research, defence manufacturing and related industrial activities.

One of the main developments is a dedicated permission system for research and development (R&D) laboratories handling small quantities of explosives. The new provisions introduce Forms AE-13 and LE-13, specify a 5 kg quantity limit and set out the documents needed for permission.

The amendment also changes certain safety requirements for defence explosives, clarifies which organisations can claim specific exemptions and introduces discounted fee provisions for eligible smaller businesses.

For manufacturers and research institutions, the first question is no longer simply whether a PESO licence is required. They must identify which permission applies to their activity and whether their existing approval covers what they intend to do.

Explosives (Second Amendment) Rules, 2026: Notification at a Glance

The notification is a final amendment to the rules, not a draft consultation. The government had previously invited suggestions on the proposed changes through G.S.R. 143(E), dated 25 February 2026.

The final amendment was issued after the government considered the responses received during that consultation.

What Has Changed Under the Explosives (Second Amendment) Rules, 2026?

The amendment changes how certain explosives-related activities are defined, authorised and regulated. Although several provisions are technical, their practical effects are important for businesses.

The main changes are explained below.

1. Defence Explosives Now Have a Specific Definition

The amendment introduces a definition of defence explosive under Rule 2(15A).

It covers explosives intended for the defence sector, including those manufactured by private companies.

This clarification matters because defence manufacturing in India is not carried out only by government establishments. Private businesses may also manufacture products intended for defence use.

However, manufacturing explosives for the defence sector does not automatically qualify a private business for the exemptions available to specified government defence establishments.

Private manufacturers must continue to meet the requirements applicable to their activities.

2. Research Laboratories Have Been Formally Defined

Rule 2(44A) introduces a definition of an R&D laboratory for explosives-related activities.

The definition covers laboratories established by companies, firms, partnerships, societies, startups or academic institutions for the manufacture, storage and use of explosives for research purposes.

This helps distinguish laboratories undertaking experimental work from businesses engaged in regular commercial manufacturing.

The distinction is important because the permission required for qualifying research activities may differ from the licence or authorisation needed for commercial operations.

3. A New Permission System Has Been Introduced for Explosives Research

The revised Rule 9(1) introduces a permission arrangement for manufacturing small quantities of explosives in an R&D laboratory.

An eligible applicant must apply using Form AE-13. The Chief Controller of Explosives may grant permission through Form LE-13, subject to applicable conditions.

The permission relates to research activities covered by the amended rules. It should not be treated as unrestricted approval to manufacture or sell explosives commercially.

4. Safety Distance Requirements for Defence Explosives Have Changed

The amendment introduces Rule 5(4), which refers to the Storage and Transport of Explosives Committee (STEC) Pamphlet for safety distances relating to defence explosives.

It also provides a transitional arrangement for qualifying existing licensed premises.

5. Fee Payments and Documentation Requirements Have Been Updated

The amendment introduces a separate discounted fee schedule for specified categories of enterprises and requires electronic payment of fees under Rule 100.

It also prescribes new application and permission forms and updates provisions relating to cancellation and suspension.

These changes make it important for businesses to review both their initial approval requirements and their responsibilities after permission is granted.

Who Needs to Review the New PESO Licence Requirements?

Not every business handling explosives is affected in exactly the same way. The relevant provisions depend on what the organisation manufactures, stores, researches or uses.

The amendment is especially relevant to organisations planning to establish an explosives research facility or expand an existing defence explosives operation.

Before applying for a PESO licence or permission, the business should identify the exact activity involved. A research facility, a commercial explosives plant and a defence establishment may face different requirements.

New PESO Permission for Explosives R&D Laboratories: What Is the 5 kg Rule?

The new R&D permission is one of the most important parts of the 2026 amendment.

Under revised Rule 9(1), a qualifying laboratory must obtain prior permission for the manufacture of small quantities of explosives for research and development.

The permission is sought through Form AE-13 and granted through Form LE-13 by the Chief Controller of Explosives.

What Does the 5 kg Limit Mean?

The amended provision states that the total quantity of explosives covered by the relevant activities at the laboratory premises must not exceed 5 kg at any one time.

This is not the same as saying a laboratory can manufacture 5 kg every day without considering the quantity already present.

The rule refers to the total quantity involved at the premises, including explosives manufactured, stored, used, supplied or transported as samples, or deployed for testing or trials, subject to the applicable regulatory conditions.

The permitted activities and quantities must also match the permission granted.

Does the R&D Permission Allow Commercial Manufacturing?

No. The research-related exception under Rule 6 is subject to specific limits.

It concerns qualifying new explosive compositions used for research and development, not general commercial production.

A laboratory cannot assume that Form LE-13 automatically permits:

• Commercial manufacturing of explosives.
• Selling developed explosive compositions.
• Supplying samples to third parties as a commercial activity.
• Conducting field trials without the required authorisation.

The amendment specifically preserves the need for authorisation under Rule 6 before commercial manufacture, sale or applicable field trials.

This distinction is particularly important for companies moving from product development to commercial production.

An approval obtained for laboratory research should be reviewed before the company begins activities outside the permitted R&D scope.

How to Apply for Explosives R&D Permission Under Form AE-13

The amendment introduces Form AE-13 as the prescribed application form for the new research permission arrangement.

The process begins with identifying the applicant, the laboratory premises and the explosives-related activities proposed.

Identify the Correct Applicant Category

Form AE-13 includes several applicant categories, such as companies, startups, MSMEs, women-led enterprises, partnership firms, proprietary firms, public sector undertakings, societies and academic institutions.

Applicants need to identify their correct organisational status and provide the details requested in the form.

Provide Information About the Laboratory

The application requires information about the proposed premises, including location and relevant property identification details.

It also asks for information about the individuals responsible for the activities and the qualifications and experience of technical personnel.

These details are relevant because the permission is connected to specified premises and research activities.

Declare the Explosives and Proposed Quantities

Applicants must identify the explosives proposed for manufacturing, storage and use.

Form AE-13 includes fields for the proposed product, class and division, United Nations classification and quantity.

The information should correspond to the research activities for which permission is being requested.

Submit the Prescribed Documents

The applicant must prepare the documents specified in amended Rule 113.

These include technical, safety, organisational and premises-related information.

The rule distinguishes between initial application documents and documents required at the subsequent stage.

Obtain Form LE-13 Permission

The Chief Controller of Explosives is the authority identified for granting the new permission.

The permission may specify the types and quantities of explosives, authorised premises, approved drawings and other relevant conditions.

Important: The notification prescribes the forms and documentary requirements but does not provide a universal processing timeline for every application. Applicants should follow the current official procedure applicable to their case.

Documents Required for PESO Explosives R&D Permission

Incomplete or incorrect documentation can create problems during a regulatory application.

For the new R&D permission, Rule 113 specifies the supporting documents.

The documents are not all required at the same stage. Businesses should follow the distinction made in Rule 113.

Why Are the Safety Management Plan and Layout Important?

Explosives research involves activities that must be carried out within the conditions approved by the regulator.

The safety management plan is part of the documents required for permission. Proposed site and layout drawings are also required under the applicable STEC guidance.

At the subsequent stage, the notification requires as-built drawings and other evidence relating to the completed premises.

Businesses should prepare these documents for the actual proposed facility rather than treating them as standard paperwork that can be reused without review.

Why Does the Authority Ask for Technical Personnel Details?

The application includes the qualifications and experience of the applicant and employed technical staff.

These particulars help identify the people associated with the proposed research activities.

Accurate information should be provided about the personnel relevant to the permission.

Revised Safety Distance Rules for Defence Explosives Manufacturers

A defence explosives facility must consider the safety requirements applicable to its particular operations.

The amendment introduces Rule 5(4), under which the safety distances for manufacturing, storing or using defence explosives are to follow the relevant STEC Pamphlet.

The notification identifies the STEC guidance as being issued by the Centre for Fire, Explosive and Environment Safety under DRDO.

What Changes for Manufacturers?

Businesses dealing with defence explosives must determine which safety distance provisions apply to their proposed premises and activities.

The applicable technical guidance is important because the Gazette amendment does not prescribe one numerical distance for every possible facility.

The correct requirements depend on the relevant technical provisions and circumstances.

Is There Any Relief for Existing Facilities?

Yes. The amendment provides a three-year transitional provision for qualifying premises that existed on the date of publication and were within premises approved under licences granted pursuant to the rules.

However, that relief is limited.

The revised provision can apply when a business undertakes certain changes, even where the premises otherwise fall within the transitional arrangement.

These include:

• Expanding licensed manufacturing capacity.
• Introducing new processes.
• Manufacturing explosives belonging to a higher Hazard Division.
• Transferring a licence under Rule 108.

Existing licence holders planning such changes should review the applicable safety distance requirements before proceeding.

The transitional arrangement should not be treated as permission to expand or change operations without further assessment.

Exemptions Under the Explosives Amendment Rules, 2026

The amendment contains exceptions for certain activities and organisations. These are not general exemptions for everyone working in the defence sector.

Special Treatment of Defence Establishments

Amended Rule 6 provides exceptions relating to explosives manufactured for the armed forces and specified establishments connected with the Ministry of Defence, DRDO and defence public sector undertakings.

Their scope must be read according to the wording of the relevant provision.

Are Private Defence Manufacturers Exempt?

Private manufacturers are expressly excluded from relying on the particular defence establishment exception under Rule 6.

The amendment also clarifies their treatment under other provisions relating to manufacturing and construction requirements.

A private company supplying explosives to a defence organisation must therefore assess its own applicable regulatory obligations.

What About R&D Laboratories?

The Rule 6 exception for qualifying research activities is conditional.

It concerns new explosive compositions intended for R&D rather than commercial production, subject to the quantity, approval and permission requirements specified in the rule.

A valid Rule 9(1) permission and the applicable Rule 6 approval process remain important.

Special Provisions for Field Trials

Amended Rule 6(17)(ix) provides for certain field trials conducted by research laboratories at specified armed forces or defence establishments.

The provision is subject to concurrence and clearance from the relevant establishment.

Businesses must not interpret this as unrestricted permission to conduct explosives field trials at any location.

PESO Licence Fees in 2026: What Has Changed?

Government fees are an important consideration for businesses applying for regulatory permissions.

The 2026 amendment changes Schedule IV by introducing provision for a separate discounted fee schedule for specified categories.

These include micro enterprises, small enterprises, startups and women-led enterprises.

Discounted Fee Categories

The notification identifies the following categories:

The amendment provides for a separate discounted fee schedule, but the supplied Gazette does not set out every payable discounted amount.

Applicants should verify the current official schedule before calculating government fees.

Electronic Payment of PESO Fees

The amendment also changes Rule 100(1).

Fees payable under the rules to the Chief Controller, Controller or District Magistrate must be paid electronically.

Businesses should follow the applicable official payment instructions and retain records of the payments made.

The cost of consultancy or professional documentation assistance, where used, should be distinguished from government fees.

Validity and Renewal of Form LE-13 Permission

The new permission form provides an important detail for businesses planning their research work.

Form LE-13 specifies a validity period of three years, up to the expiry date recorded in the permission.

This should not be confused with the validity of every other PESO licence issued under different regulatory categories.

The actual permission document should be checked for its conditions and expiry date.

When Can Permission Be Cancelled?

Amended Rule 118 identifies circumstances that may lead to cancellation.

These include situations involving:

• Loss of lawful possession of the approved premises.
• Specified criminal convictions or other legal disqualifications.
• Leasing the licensed or relevant premises or manufacturing facilities to another person or organisation.
• Cancellation of the relevant NOC under the applicable provisions.

The rule also allows suspension or cancellation in specified circumstances involving violations of the Act, rules or permission conditions.

Does the Permission Holder Get an Opportunity to Respond?

The amended rule provides an opportunity of being heard before suspension or cancellation under the relevant provision.

It also states that suspension does not itself prevent the holder from applying for further renewal.

This does not mean that renewal is automatic. The application remains subject to the applicable requirements and decisions of the competent authority.

What Do the New Explosives Rules Mean for Businesses?

The changes are likely to matter most when a company is beginning an explosives-related activity, developing a new product or planning changes to an existing licensed facility.

For Explosives R&D Laboratories

The amended rules provide a defined permission route for qualifying small-quantity research activities.

This helps laboratories identify the application form, permission form and documentation relevant to their proposed work.

However, the permitted quantity and scope of activities must be carefully checked.

For Defence Explosives Manufacturers

Private manufacturers must pay attention to the distinction between their obligations and the exceptions available to specified defence establishments.

Safety distance requirements also deserve particular attention when establishing or expanding facilities.

For Startups and Smaller Enterprises

The recognition of eligible enterprises within the fee provisions may be relevant to smaller businesses working in this sector.

They should verify their category and understand whether the new R&D permission arrangement applies to their activities.

For Existing PESO Licence Holders

Companies with existing approvals should examine their licence conditions before changing their operations.

An existing approval may not automatically cover a new process, higher Hazard Division, expanded capacity or another materially different activity.

What Should Businesses Do After the 2026 Amendment?

Businesses do not necessarily need to submit a new application simply because the amendment has been issued.

The appropriate next step depends on the activity and the permissions already held.

A practical compliance review should cover the following.

1. Identify the activity: Determine whether the business is conducting qualifying R&D, commercial manufacturing or another regulated activity.
2. Review existing approvals: Check whether existing licences or permissions cover the intended work.
3. Verify the quantity limit: Laboratories seeking Rule 9(1) permission should understand the relevant 5 kg restriction.
4. Check the prescribed documents: Review Form AE-13 and the application-stage documents listed under Rule 113.
5. Assess safety requirements: Determine whether the revised STEC-related provisions apply to the facility.
6. Review planned operational changes: Consider whether expansion, new processes or changes in explosives classification affect existing approvals.
7. Check permission conditions: Review the authorised premises, explosives categories, quantities and validity period.
8. Identify any separate authorisation: Do not assume R&D permission covers commercial activities or field trials requiring additional approval.

These checks can help a business identify where it needs further regulatory clarification or application support.

How Corpseed Can Help with PESO Licence and Explosives Compliance

Obtaining the correct regulatory approval starts with understanding the proposed activity.

A business planning an explosives research laboratory may need a different approval arrangement from a company establishing a commercial explosives manufacturing unit.

Corpseed provides PESO licence consultancy and application support for businesses dealing with regulated products and facilities.

PESO Licence Application Assistance

Corpseed's PESO licence services can help businesses understand relevant application requirements and organise the information and documents needed for an appropriate licence application.

Businesses considering the new R&D permission should first confirm the exact scope of assistance available for Forms AE-13 and LE-13.

Documentation and Site Plan Support

PESO applications can involve premises records, drawings and technical documentation.

Corpseed's published PESO service information describes assistance with document preparation, site plans and related application coordination.

The precise requirements depend on the licence or permission category.

PESO Compliance and Existing Licence Review

Companies holding explosives-related approvals may need support reviewing documentation and identifying regulatory requirements before expanding their facilities or changing operations.

Businesses should establish which approvals are affected before submitting an application or making operational changes.

PESO Licence Renewal Assistance

Businesses should monitor the validity of their approvals and review the relevant renewal conditions.

Corpseed also provides PESO licence renewal support, subject to the applicable licence type and service scope.

Need help with a PESO licence in India?

Whether you are preparing an explosives licence application, reviewing an existing approval or assessing the new R&D permission requirements, you can contact Corpseed to discuss the applicable compliance process.

Key Takeaways

The Explosives (Second Amendment) Rules, 2026 make several important changes to India's explosives regulatory system.

The most notable development is the introduction of a specific permission arrangement for qualifying R&D laboratories through Forms AE-13 and LE-13.

The amendment also introduces revised defence explosives safety distance provisions, clarifies the limits of certain exemptions and addresses discounted fee categories for eligible businesses.

For an explosives manufacturer or research institution, the important point is to understand what its existing approval permits, what the new rules require and whether its planned activities need further authorisation.

Businesses should review these matters before beginning new research operations, increasing manufacturing capacity or making changes to approved facilities.