Govt to support SME participation in defence

Defence Minister, A. K. Antony lighting the lamp to inaugurate the DEFEXPO 2012, in New Delhi on March 29. The Minister of State for Defence, Dr. M.M. Pallam Raju and other dignitaries are also seen.

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SME Times News Bureau | 30 Mar, 2012
The Minister of State for Defence Dr. MM Pallam Raju has said that the Government would encourage Joint Ventures and promote the participation of Small and Medium Enterprises (SMEs) in the Defence Industry sector.

Addressing the Inaugural Ceremony of the Defexpo India-2012, the 7th Land, Naval and Internal Security Systems Exhibition, in New Delhi on Thursday, he said, "The Government is committed to do its utmost to render maximum possible for support to SMEs in order to promote their participation in Defence Production."

"The Industry also needs to commit itself to the field in terms of establishing the required infrastructure and develop the capacities. Commitment to R&D effort is also required by the Defence Industry both in the Public and Private Sector if the long term goals are to be met," he added.

Speaking about the Defence Production Policy, the minister said, "The objectives of the Defence Production Policy announced last year are to achieve substantive self-reliance in the design, development and production of equipment, weapon systems and platforms required for Defence in as early a timeframe as possible; to create conditions conducive for the Private Industry to take an active role in this endeavour; to enhance the potential of SMEs in indigenization; and to broaden the Defence R&D base of the country."

"The Government has been periodically reviewing the Defence Procurement Procedures with a view to lend greater transparency and impartiality as well as to speed up the acquisition process."

"The introduction of the new category of acquisition “Buy and Make (Indian)” is a major shift enabling Indian Industries to enter into Joint Ventures with Foreign OEMs. The route has opened up ways for Technology Transfer to Indian Industry based on the requirements of the Armed Forces," he added.

He said that the ongoing Modernization of Armed Forces has presented enormous opportunities for doing business in Defence Sector in India. "We are looking for partnerships and co-development arrangements and formation of Joint Ventures in the Critical Technology Areas," he added.