‘‘MSMEs will get orders worth Rs 50k cr from Defence sector’
| Date :22-Nov-2019 |
From left, Brig. Suhaas Kulkarni, Group Captain Shrivastav, Lt.-Gen. Sanjay Varma, Lt.-Gen Ravindra Thodge, Sampathkumaran ST - DRAL and Harshwardha Gune of VDIH.
Business Bureau :
In the recently concluded SME Conference organised by VED. A session was organised on ‘Opportunities in the Defence sector” wherein information was disseminated about Defence equipment and products. India plans to spend USD 130 billion on military modernisation in the next 5 years, as achieving self-reliance in Defence is as key target for the Government of India. The Government has opened up the Defence industry for private sector participation to provide impetus to indigenous manufacturing.
Experts as well as entrepreneurs from the sector guided the participants on the vast opportunities this sector had to offer. The panelists comprising ex-Defence officers and from private enterprises addressed the potential entrepreneurs, on the session specifically focussing on the opportunities available in the Defence sector. Lt. Gen. Ravindra Thodge, AVSM, SM, VSM, Chairman and Chairman of Vidarbha Defence Industrial Hub (VDIH) said, “Problems are plenty, we have to find out the solutions and take them to the Government.”
Among the panelists was Lt.-Gen Sanjay Varma AVSM, VSM, retired from Indian Defence Accounts Service, now Director General, Weapons & Equipment. His publications include, “Better Governance through Accounting Tools” and “Analysis of Performance of Public Sector in India for Better Financial Management”. Lt. Gen. Sanjay Verma spoke on ‘Procurement of Weapons.’ He said, MSMEs are not in uniform like the Defence forces, but contribute to the GDP, exports, employment generation, hence equally important. He informed that there are massive plans to enhance Defence possibilities so the role of MSMEs can come into play. “We have to depend on imports alone but it’s high time we stood on our own legs by making Defence equipment. In this, the Government has reservations for MSMEs. Defence production is going to inform MSMEs as to what is required. In the next few years orders will be given for Rs 40-50,000 crore for supplies by MSMEs. Most contracts will be given to Indians. OEMs won’t make our guns, helicopters, small arms, rifles, communications equipment, personal protection equipment and all these would percolate down to the MSMEs.”
Panelist Sampathkumaran S T, is Chief Executive Officer with Dassault Reliance Aerospace Limited. In his role as CEO, he drives the business operations of the company. He is leading the team from India & France for setting up of the greenfield Aerospace & Defence park at MIHAN Nagpur. His vision is to build Falcon Business jets & Defence Fighter Aircraft in India in a record time & fly the Falcon 2000 out of MIHAN in next 3 years. He spoke on, ‘Vendor Development Program – DRAL.’ He said, it was not easy in Nagpur starting deliveries, but within 60 days they rolled out their products. Two aircraft per month is a huge task and challenge. Falcon 2000 reached a good level.
A complete Falcon 2000 needs 30,000 parts and it’s very difficult to locate vendors for safety of the product is of prime importance and safety comes only when you use a good product and such a product has to meet European quality standards to get an AS certification. Lt.-Gen. Thodge then invited Group Capt. Shrivastava to talk of required clearances. He said, “They are very stringent about aviation clearances. A lot of ground systems come from the West now though mostly from Russia. It’s very difficult to maintain aircraft and ground systems as these have to be kept safe. India has the fourth largest force. To maintain that, we need space and technology.” Panelist Brig.
Suhaas Kulkarni, Senior GM - Defence, Solar Group spoke on ‘Opportunities and challenges for the private sector.’ Brig Suhaas M Kulkarni is an alumnus of Indian Military Academy, Dehradun. He was commissioned in the Corps Of Electrical & Mechanical Engineers of Indian Army. In his 34 years of service he has gained experience of serving in various units from Siachin to Gopalpur-on sea and from Tawang opposite China Border to Jodhpur on the West. During Kargil operations, he served in Sunderbani sector along Pir Panjal ranges. He carries with him a rich experience of serving in Ministry of Defence Production at Delhi and other cities with industry hubs handling procurement of tank electronics, radio sets, Weapon locating Radars, air defence guns etc. He said, in the industry side, 25 per cent procurement was assured by the Government at Magnetic Maharashtra. The State Government’s aerospace and Defence Manufacture Policy would require huge infrastructure, he said.