The Ministry of Micro, Small and Medium Enterprises (MSME) has sought collaboration with the Defence Ministry to facilitate transfer of technology to small units for enabling them to manufacture defence products.
The Ministry of Micro, Small and Medium Enterprises (MSME) has sought collaboration with the Defence Ministry to facilitate transfer of technology to small units for enabling them to manufacture defence products.
"We have asked the Ministry of Defence for certain dispensations to be given for small and medium units. Offset (Policy) may include transfer of technology to such units. We are looking forward to a favourable consideration," Secretary in MSME Ministry R K Mathur said at an Assocham function in the capital.
The MSME Ministry has asked the Defence Ministry to help these small units in getting technology from larger companies, under Offset Policy, which would make small and medium enterprises (SMEs) more competitive.
As per the Offset policy, under Defence Procurement Procedure (DPP), the foreign vendors with contracts worth over Rs 300 crore have to re-invest a minimum amount of 30 per cent back into the Indian defence, homeland security and civilian aerospace sectors. Following this, investments of Rs 18,000 crore have already been made and another Rs 40,000 crore of obligations are in various stages of negotiations under the defence offset policy.
In November 2011, the government had approved a procurement policy under which state-run departments and PSUs will aim giving preferences to micro and small entrepreneurs (MSEs), including those belonging to SCs/STs. However, the government said that given defence sector's unique nature, defence armament imports will not be included in computing the 20 percent annual target for Ministry of Defence. Also, defence equipment like weapon systems, missiles will remain out of purview of such policy of reservation.
Further, Mathur said, the defence sector could explore the possibility of outsourcing its activities related to maintenance to small units.
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