Govt allocates Rs 400 crore for setting up test facilities for MSMEs

Chennai, Nov 23 (KNN) To enable Micro, Small and Medium Enterprises (MSMEs) to test the products they manufacture for the armed forces, the Ministry of Defence has allocated Rs 400 crore for setting up facilities.

The units will come in the South and North defence corridors.

Reportedly, speaking at the Quality Assurance-Industry Conclave South Zone in Chennai on Friday, Rear Admiral A George, Additional Director General Quality Assurance (Warship Projects) said the Ministry is planning to set up 6-8 defence product testing facilities for which it has allocated Rs 400 crore.

While speaking to media persons, George said that the scheme will be launched soon and the first test facility to come up was likely to be for drones.

George further said, it would provide a grant-in-aid up to 75 per cent of the cost of equipment for the product testing facility, while the balance 25 per cent has to be brought in by a consortium of private investors. The product test facility will be a special purpose vehicle (SPV).

Earlier at the conclave, George formally awarded the `Green Channel Status' to L&T Valves - the valve manufacturing division of Larsen & Toubro group.

The status allows manufacturers to self-certify their supplies to the defence services. L&T Valves will be the first private sector firm to get this status.

The companies with a turnover of Rs 1,000 crore during the last three years and are profitable for three years out of the last five years are eligible to apply for the 'Green Channel Status'.

The Green Channel certification is valid for five years and can be renewed.

L&T Valves caters to oil and gas, power, petrochemicals, chemicals and water sectors, apart from defence and aerospace.

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