Govt launches new MSME partnership programme for defence production

19 Jan 2018


The Department of Defence Production on Thursday launched policy initiatives for supporting Indian vendors, especially medium, small and micro enterprises  (MSME), with defence minister Nirmala Sitaraman handing over three representative technology transfer agreements of Defence Research and Development Organisation (DRDO) with industry – one each for the Army, Navy and the Air force.

At a two day 'Defence Industry Development Meet' organised by the Department of Defence Production, at Kalaivanar Arangam in Chennai, the department announced the opening up of several new avenues for private participation in defence production.

DRDO also showcased the technologies, which are available for the private sector for commercial exploitation.

The Ordnance Factories Board (OFB), the main supplier of arms and ammunition for the defence forces, is offering more than 20 products to vendors for indigenisation.

Defence sector units like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Earth Movers Ltd (BEML), Bharat Dynamics Ltd (BDL) and Mishra Dhatu Nigam Ltd (Midhani) also showcased over 50 products for indigenisation by the industry.

Besides, Mazagaon Shipyard Ltd (MDL), Garden Reach Shipbilders and Engineers (GRSE) and Goa Shipyard Ltd (GSL) showcased vendor development opportunities.

Defence minister Nirmala Sitaraman also unveiled simplified 'Make-II' procedure, which stipulates relaxed eligibility criteria, minimal documentation, provisions for suo-motu proposals from individuals / industry, particularly for innovative solutions and relaxed eligibility criteria for start-ups. This procedure envisages assurance of order on successful development of prototype.

Besides, the defence minister launched Defence Investor Cell being set up by the Department of Defence Production, which will facilitate investment in defence production sector. The Defence Investor Cell will directly interact with all interested investors with regard to potential investment and the queries related to policy and the projects handled by the MoD.

More than 1,000 vendors are participating in the two-day event.

The Indian Army, Navy and the Air Force are projecting their requirements, especially related to MSMEs, for indigenisation.

The ministry of MSME presented the policy initiatives to support MSME while the Department of Industrial Policy and Promotion brought out the initiatives taken by the government for 'ease of doing business' processes and issues related to licensing of defence products.

Ministry of home affairs also presented their requirement for police and paramilitary forces.

Defence PSUs and OFB are providing facility for on-the-spot vendor registration for prospective vendors for supplying defence needs.

The event has brought all defence related vendors and suppliers of Tamil Nadu and other parts under one roof and will facilitate creation of an aerospace and defence ecosystem in the region.

During the meet defence minister also highlighted the recent policy initiatives, including 'Make-II' procedure released by the government on 16 January 2018, Defence Innovation Hub for Coimbatore, CODDISSIA and Defence Investor Cell. She said more initiatives to promote 'Make in India' in defence would be taken up.

The objective of the meet is to forge new partnerships with private industry with the aim of achieving self-reliance in defence production under the overarching 'Make in India' initiative of the government.

The meet will focus on indigenisation, import substitution and technology infusion. The event is part of the ministry's initiative to encourage and facilitate participation of private industries especially MSMEs in defence manufacturing.

The event will provide private firms/companies especially vendors from Tamil Nadu region an overview of the existing defence procurement policy, indigenisation and outsourcing procedures of DPSUs/OFB and update them on the recent government policy initiatives to promote indigenisation and outsourcing and the opportunities thereon.

Sitharaman also announced that the next Defence Expo would be organised in Chennai between 11 and 14 April 2018.

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