SME Times News Bureau | 20 Aug, 2019
Defence Minister Rajnath Singh on Tuesday said that the Technology
Development Fund (TDF) Scheme will encourage MSMEs to take part in defence
the inaugural address at the seminar on 'Modernisation and Indigenisation plans
of the Indian Air Force' in New Delhi , Singh referred to the TDF Scheme
which has been established under the aegis of Defence
Research and Development Organisation (DRDO) to promote self-reliance in
Defence Technology as part of ‘Make in India’ initiative.
He said the scheme will encourage participation
of public/private industries especially MSMEs so as to create an ecosystem for
enhancing cutting edge technology capability for defence application.
He emphasised the need to progressively reduce
dependence on foreign manufacturers and indigenously develop comprehensive
capabilities in the defence sector.
Singh urged the private industry to take advantage of the policy
initiatives of the Government and engage with defence services, Defence Public
Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) for meeting their
He reiterated the government’s commitment to
resolving any outstanding issue in the way of growth and development of
Indigenous Industries in defence sector. He asked the industry not to expect
any short-term returns but invest for long term gains.
Singh described Indian Air Force as a
technologically advanced and extremely potent force saying that the recent
offensive against terror outfits in our neighbourhood speaks volumes about the
reach and lethality of the formidable arm of the Armed Forces.
Indian Air Force, besides Army and Navy, needs to
keep pace with the advancements in technology for enhancing operational
capabilities, he added.
Recalling Prime Minister Shri Narendra Modi’s
call to modernise our Armed Forces, Rajnath Singh said efforts are being made
to increase the participation of the private sector in ‘Make in India’ in
Listing out the Government’s initiatives to promote
‘Make in India’, the Raksha Mantri said foreign investment up to 49 per cent
was allowed through automatic route and up to 100 per cent under Government
route on case-to-case basis.
He urged foreign Original Equipment Manufacturers
(OEMs) to establish manufacturing facilities in India adding that a number of
opportunities are available to foreign companies through FDI, Joint Ventures or
the defence offset route.
Singh also said the process of defence offset
implementation has been streamlined and one of the major demands of the
industry to reinstate the provision of services for discharge of offsets has
now been provided.
announced approval for use of test facilities of government entities for the
private industry to meet the best quality standards required for defence
manufacturing. He said the decision to this effect has been taken after
incorporating the comments of the stakeholders particularly indigenous defence
hope that the synergy between government’s efforts and industry participation
will help fulfil the long-cherished dream of making India a frontrunner in
He added that comprehensive outsourcing and
vendor development guidelines for DPSUs and OFB to promote participation of
private sector, particularly MSMEs in defence production.
He said indigenisation requirements of Hindustan Aeronautics Limited (HAL), OFB, DPSUs, Army,
Air Force and Navy have also been hosted on Ministry of Defence (MoD) website
for the benefit of the private industry.
The Raksha Mantri
said the defence products list for issuing industrial licenses under Industry
Development and Regulation (IDR) Act has been revised adding that it has
reduced the entry barriers for the industry especially the small and medium
validity of Industrial license has been increased from three years to fifteen
years with a provision to further extend it by three years on a case-to-case
basis, he added.