Defense Ministry to buy defense products from MSMEs for a period of 10 years: Sitharaman
New Delhi, Aug 13 (KNN) Eyeing to improve indigenous defense manufacturing units, Defense Minister Nirmala Sitharaman assured the MSMEs dealing in manufacturing of defense products that the government will purchase their products for a period of 10 years.
She was speaking during the inauguration of the first phase of Uttar Pradesh defense industrial corridor in Aligarh which is one of the six nodal points of defense production corridors in UP that would pass through six districts namely Aligarh, Agra, Jhansi, Kanpur, Lucknow and Chitrakoot.
Speaking on the occasion, Sitharaman said “Startups and MSMEs can show their innovative products to us. After the required tests are completed, we are ready to buy those products. I assure you to give you orders for minimum 10 years."
Assuring that the Union government will support the defense industry in every possible manner, she urged the defense industries to increase their export capacity to meet global demand for quality defense products.
She further said all aspects of the defense production should be taken care of in order to create the defense manufacturing corridor.
"There is a global demand for world class defense equipment and products. I urge all of you to increase your defense export potential. We are willing to work with you to reach this goal," she added.
The minister said she would appeal to the investors to look beyond the armed forces in terms of potential markets.
The first phase of proposed corridor started within six months after it was announced by Prime Minister Narendra Modi during the investor’s summit in February this year.
The announcement to develop two defense industrial production corridors to promote the defense sector was made in the Union budget 2018.
The second corridor is being built between Chennai and Bengaluru—connecting Kattupalli Port, Chennai, Tiruchirappalli, Coimbatore and Hosur.
Uttar Pradesh Chief Minister Yogi Adityanath claimed that the state is now the best place for investment and added that the defense corridor will increase job opportunities in the state.
He further said the state has identified 4,000 hectares of land on Jhansi-Bundelkhand expressway and 263 hectares in Aligarh for the defense corridor.
The chief minister said they have already drafted defense and aerospace policy to extend cooperation to defense companies in private and public sector.
The total amount of investment announced was of the order of Rs. 3732 crore.
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