Coimbatore, Jun 4 (KNN) Coimbatore District Small Industries Association (CODISSIA) is considering formation of a consortium of units to tap opportunities in defence sector.

According to a media report, CODISSIA President EK Ponnuswamy said that with the 30 per cent offset policy of the Government and the ‘Make in India’ initiative, MSMEs in the country had more opportunities in the defence sector. Foreign companies that invest in India and Indian companies that get into the defence sector will need suppliers at different levels and for several components.

He said that though the MSMEs cannot be tier-one suppliers to these companies, they can be tier-two or tier-three suppliers.

He added that the MSMEs had already invested in plant and machinery and even testing facilities. They proposed to take up a study on the needs of the defence sector, the capabilities of the industries here and the ways to tap the opportunities. If the government extended the offset policy benefits to the consortium too, they can use the common fund to import technology, create facilities to meet the quality norms and start supplying at least to tier-one suppliers.

The association has appealed to the Union Government to change the offset policy and extend the benefit, which is now available to individual units, to the consortium too, said the report.

Another member of the association pointed out that several MSMEs in Coimbatore were into manufacture of components for the automobile sector.
Hence they had the experience of precision manufacturing. They only need to improve on this to cater to the defence sector, it said. (KNN Bureau)