Defence Minister Nirmala Sitharaman on Saturday urged Indian defence equipment manufacturers to look beyond domestic market and supply their products overseas, assuring them that her ministry would assist with whatever ‘hand-holding’ was required to expand their reach.
Sitharaman, along with Uttar Pradesh Chief Minister Yogi Adityanath, also formally announced a defence industrial corridor in UP encompassing Aligarh, Agra, Kanpur, lucknow, Jhansi, Chitrakoot circuit, other than other defence investment projects.
The circuit has clusters of defence equipment manufacturers, both government (defence public sector undertakings and ordnance factories) and private players, including medium, small and micro enterprises (MSMEs).
This is the second defence corridor after Tamil Nadu, which was formally declared by the government following an announcement made in the 2018-19 Budget.
“There should be a change in the mindset of defence manufacturers. You just look at orders from Indian defence forces and forget about the world. I humbly request that the way you supply (equipment) to armed forces, there is equal market outside,” Sitharaman said.
“Whatever hand-holding is required from the Defence Ministry will be extended to you,” she said, stressing that the export market should be encouraged.
To encourage domestic defence industry, laws have been changed, the Defence Minister noted. “Earlier, forces would send a proposal if there was necessity cited by them. Now, manufacturers can suo motu suggest necessity for armed forces. If the item passes trials and tests, then we will place orders for the next 10 years,” she said.
Addressing a stakeholders’ convention jointly organised by the Defence Ministry and the Federation of Innovative Manufacturers, Aligarh, Sitharaman praised the positive response given to the landmark project by the UP government.
She said that the presence of Vice Chiefs of Staff of Army, Air Force and Navy at the interface with manufacturers was a pointer that the Defence Ministry was taking this project aimed at self-sufficiency in defence production seriously.
Sitharaman said, “The ministry would not only welcome participation in existing products, but would also positively respond to any innovative ideas offered by entrepreneurs on defence-related manufacturing items.”
She also said that the first step in this project would be to provide technical training to personnel, who would be absorbed in different industrial units slated to be established at an industrial hub near Tappal adjoining Yamuna Expressway between Noida and Agra.
Earlier, Chief Minister Yogi Adityanath said that the state was determined to provide security and investment climate needed for making the project a success.
He said that the UP government had decided to construct the Bundelkhand Expressway for linking Agra to Jhansi and Chitrakoot.
“All three districts are included in this corridor along with lucknow. A total of 263 hectares of land has been earmarked at Tappal (in Aligarh) for the Defence Production Park,” he said.
Yogi also said that a single window portal was being set up for immediate redressal of problems faced by manufacturers in setting up units in such parks in the state.
Six nodal points — Agra, Aligarh, lucknow, Kanpur, Chitrakoot and Jhansi — have been identified for the defence industrial corridor in UP.
The Chief Minister said that investors were initially wary of UP but his government was guaranteeing security to all investors besides easing business processes.
“When the announcement of a Defence Corridor was made in the Budget, I approached the Defence Minister to get one in our state,” Yogi said.
“To encourage defence industry, nearly 4,000 hectares of land has been notified near Jhansi and 200 hectares in Aligarh,” Yogi said.