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Make in India, DPP creates Rs 18,000 cr market for MSMEs in defence space

Tags: MSME, Indian defence, Defence Procurement Policy 2013, Electronic Warfare

December 08, 2014 | COMMENTS ( 0 )

Make in India, DPP creates Rs 18,000 cr market for MSMEs in defence space

The Indian defence MSME (micro, small and medium) sector is likely to be benefitted by the Defence Procurement Policy 2013 and the Make in India campaign, which has created Rs 18,000 crore ($3 billion) opportunity for the sector, according to an IANS report.

Defence MSMEs said that these two key initiatives have served as a boon for them as it has given Rs 90,000 crore offset opportunity for the defence players in defence public sector undertakings (DPSUs), enterprise as well as for the MSME sector.

Samtel Avionics informed that an additional Rs 72,000 crore was estimated from the Indian Air Force as the Indian Navy will be demonstrating another Rs 13,500 crore possibility, while the prospect from the Indian Army is anywhere around Rs 4,500 crore.

"The total value of the defence offsets contracted in the last few years is valued around Rs 28,800 crore. The Indian Air Force has signed contracts worth approximately Rs 21,600 crore, the Indian Navy worth Rs 5,064 crore and the Indian Army Rs 144 crore", Samtel Avionics Executive Director Puneet Kaura told IANS.

"Now that serious efforts are being made to attract MSMEs into this sector, there is no doubt that they will rise to the occasion by raising their standards of quality and reliability of parts and assemblies that they manufacture and supply to the larger players", G. Raj Narayan, founder and managing director of the diversified Radel Group told IANS.

"This will lead to a significant reduction in costs as well as time of execution of projects since outsourced work can actually happen in parallel in multiple efficiently managed MSME organizations," he added.

Committing MSMEs a long-term business for at least eight years, financial support for R&D development and availing the defence equipment can ensure the business sustainability of this sector.

"There are EW (Electronic Warfare) suites to be bought, as well as radar systems, optronic systems, displays and other LRUs which have to be procured. Requirements exist in segments ranging from space to underwater (submarines)," Kaura added.
 

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