Private sector, specifically the micro, small and medium enterprises, would get a lot more opportunities to build, make and maintain high-grade weapon systems for armed forces with the Defence Ministry intending to produce many of them in the country in the next five years, said Adviser to Defence Minister G. Satheesh Reddy here on Thursday.
“The government is committed to indigenisation of weapon systems with top priority to be given to those that have been indigenously-designed and manufactured. We need technologies that are not already there,” said Dr. Reddy at CII conclave on ‘Connecting the dots in Telangana’s defence & aerospace sector’.
Calling for prioritising the needs, he pointed out that 90% of Akash missile components was being made by the industry with BDL becoming a ‘model integrator’. There was enough space for many players to co-exist in the defence aerospace market as MSMEs can do the job without needing much funds and infrastructure.
Export market
“The Technology Development Fund, Atal Innovation Scheme and Innovation Research are available to support the industry,” said the top defence scientist. At the same time, he cautioned the industry that survival would be tough and there would be hard days if it depends on the defence PSUs or armed forces alone for orders. Instead, they should aim at the export market for sustained orders and keep up the quality of work.
Dr. Reddy also said that the Ministry was contemplating on coming out with a quality grading system rather than allow a third party from outside to do it, which would also encourage the industry to have internal quality systems. Hyderabad was well-placed to grab the opportunities considering its developed eco-system of about 1,000 MSMEs already working in the spheres.
A call for a common testing and capital support or bank guarantees was also made at the meeting.
V. Rajanna, Chairman, CII Telangana; R. Jadeja, chief executive, Kalyani Rafael Advanced Systems; R.S. Reddy, MD Rachmallu Forgings; and others also spoke.