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New fund for defence enterprises

An Indian Arjun Mark II tank drives through sand during a display at the DefExpo 2018, in Chennai on Wednesday.

An Indian Arjun Mark II tank drives through sand during a display at the DefExpo 2018, in Chennai on Wednesday.   | Photo Credit: PTI

The Indian government is planning to set up a new fund for small and medium defence enterprises. It will be a dedicated Defence and Aerospace SME fund, Ajay Kumar, Secretary, Defence Production, said.

The fund will be registered with SEBI and minority stake can be taken up by investors, he said adding that the fund will help channelise investments to the two defence corridors, in Uttar Pradesh and Tamil Nadu, Mr. Kumar said.

Meanwhile, the Adani Group said it was setting up a new facility to manufacture composite aero structures for Hermes 900, a tactical medium-altitude, long-endurance unmanned aerial vehicle (UAV) system, in Hyderabad.

Ashok Leyland, said it was targeting revenue of about ₹50 billion from the defence sector. It currently has revenues of around ₹8 billion from the sector. The company unveiled 6 products at the Defence Expo on Wednesday.

Another JV was signed at the Expo by Cyient Solutions & Systems and Israel-based BlueBird Aero Systems. Under the agreement, Cyient will indigenise, manufacture, assemble, integrate and test advanced Unmanned Aerial Vehicles at its Hyderabad factory for which BlueBird will provide its technology and manufacturing know-how, a press release said.

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Printable version | Feb 22, 2020 1:52:57 AM | https://www.thehindu.com/news/national/new-fund-for-defence-enterprises/article23505610.ece

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