NSIC to host Defexpo in Bangalore
The micro, small and medium enterprises sector says it is banking on the forthcoming revision of the Defence Procurement Policy which may reserve 20 per cent minimum sourcing from them in defence supplies contracts.
This limit would double the present quota, which, according to them, is not truly followed.
MSMEs already supply a large amount of components, special alloys and metal parts for major military hardware made in the country.
The Government plans to massively indigenise military supplies. DPP-2012, if it sets such a supply limit, would bring a big bonanza for the MSMEs, said Mr P. Udayakumar, Director (Planning and Marketing), National Small Industries Corporation.
The proposal is to make it mandatory for large manufacturers to source from the MSMEs after five years.
To tap the market, NSIC is hosting its second MSME Defexpo this year in Bangalore, home to defence majors such as HAL, BEL, BEML and the DRDO labs.
The three-day International MSME Sub-contracting and Supply Exhibition starting on March 2 will focus on equipment and systems for defence, aerospace and homeland security.
Global and domestic majors are expected to participate in the event.
The Ministry of MSMEs is sponsoring the event through NSIC.
The 70 per cent indigenisation programme by the year 2020 should also mean a market opportunity worth $100 billion.
“They are quite up to the mark. MSME Defexpo (which follows this year's two-yearly Ministry of Defence exposition, Defexpo, held in Delhi) will kill a myth that their quality is below par,” Mr Udayakumar told Business Line.
Mr M. Maheshwar Rao, Karnataka Commissioner for Industrial Development and Director, Industries & Commerce, said MSMEs needed to be raised from the bottom of the supply chain, where they currently are. Bangalore as defence and aerospace hub was an ideal location to promote their case.
The indigenisation cells of the three Forces are expected in strength.
