New Delhi, Apr 27 (KNN) At a recent meeting with the Raksha Mantri, MSMEs asked for implementation in letter and spirit of the announced defining features of Defence Procurement Procedure 2016 of enhancing the role of MSMEs in defence sector.

According to reliable sources the meeting was called by the Raksha Mantri  Manohar Parikkar  with the representatives of the leading Industry bodies to discuss the procedure for selection of strategic partners in defence procurements.

The defence ministry has recently released guidelines for selection of strategic partners who will be the long term single source of supply for crucial defence platforms like Aircrafts, Helicopters, battle Tanks, Submarines etc.

In the spirit of Narendra Modi’s vision of Make in India, the strategic partners will be selected from indigenous industry with majority shareholding by Indian entities. The suggested qualifying turnover of Rs. 4000 crore for each strategic partner indicates the size of the procurements.

Responding to the various issues raised by the large corporates at the meeting, Shri Parikkar assured that while competitive bargaining will be the cornerstone for any defence procurement, to develop domestic competency, cost plus pricing will be followed for procurement from strategic partners, for limited items.

It has been learnt that representatives from the MSMEs led by FISME, raised the issue of ensuring a fair share for MSMEs in procurement from strategic partners by ensuring a vendor eco system while selecting a strategic partner.

It has also been mentioned that globally nearly 80% of the components for strategic defence platforms are supplied by vendors.

MSMEs also raised the demand of reserving at least 20% of all procurements of strategic partner, for MSMEs.

Talking with KNN, an expert on MSME matters informed that the real ‘gate’ for entry of MSMEs in defence supply is lack of information and it needs to be taken up ‘pro bono’ by the MSME federations.

However, to inform the MSMEs , at large, about the opportunities in defence supplies, the  MSME bodies need to be well informed, which according to the expert,  is possible only if the  Defence Ministry associate credible  MSME federations  in the entire process of strategic requirements, selection of strategic partners and breaking down of the contract to parcels feasible for the MSMEs.

MSMEs also demanded  for creation a of a fund for supporting MSMEs in developing prototypes for defence equipment and carrying out crucial R&D in developing sub- systems particularly electronic hardware and software for command, guidance and control. (KNN/ DB)