Hon’ble Raksha Mantri, Smt Nirmala Sitharaman Initiates Development of Tamil Nadu Defence Corridor at Defence Industry Meet in Tiruchirappalli, Tamil Nadu

Hon’ble Raksha Mantri, Smt Nirmala Sitharaman Initiates Development of Tamil Nadu Defence Corridor at Defence Industry Meet in Tiruchirappalli, Tamil Nadu,

Hon’ble Raksha Mantri, Smt Nirmala Sitharaman Initiates Development of Tamil Nadu Defence Corridor at Defence Industry Meet in Tiruchirappalli, Tamil Nadu

  Chennai, 16th Mar 2018

              Under the Hon’ble PM’s larger vision of pushing Make in India, the Ministry of Defence has taken multiple measures to promote indigenisation in the Defence Industry. In the 2018 Budget, two Defence Corridors were announced in Tamil Nadu and Uttar Pradesh respectively. Subsequent to the announcement, the process has beg un to set up these Corridors. As one of the first steps to initiate development of the Tamil Nadu Defence Cor ridor, an interactive meeting with local industry was held at Tiruchirappalli on  16th March, 2018.  The meeting, which was attended by over 200  representatives from the industry, was addressed by Hon’ble RM Smt Nirmala Sitharaman.  Several Ministers and senior Officials of Tamil Nadu Government and  senior Officials from Ministry of Defence, Defence Public Sector Undertakings, Bharat Heavy Electricals Limited (BHEL) and Ordnance Fact ory Board were also present for the meeting.

In her inaugural address, Hon’ble RM gave a brief overview of the importance of the defence sector in the overall growth and development of the country and highlighted the imp ortance of the proposed Defence Corridor in this respect. Hon’ble RM also sought the active support of all the stakeholders to make the project succes sf ul Several presentations ranging from measures taken to promote indigenization and self-reliance in defence production, the industry friendly measures taken by the Tamil Nadu government,  the  envisaged  role of the Public Sector Enterprises in the proposed Defence Corridor and the capabilities and expectations of the local industry were made. The presentations were followed by a very vibrant question answer session. 

The Tamil Nadu Defence Corridor, also called the Tamil Nadu Defence Production Quad as the nodal cities form a quadrilateral, will include Chennai, Hosur, Salem and Coimbatore, Tiruchirappalli as nodes.  These nodal cities have existing defence ecosystem in the form of OFBs, vendors working with Defence PSUs, and other allied indu stries. The Tamil Nadu Defence Corridor aims to bolster interaction between all industry players in order to create long term synergy and eventual development of the area into a Defence Production powerhouse.

            Speaking on the occasion, Smt. Sitaraman also invited the local manufacturers to showcase their products related to defence supplies so as to attract the attention of more than 300 manufacturers expected to be present in the DefExpo 2018 scheduled between 11th to 14th April, 2018 at Chennai.

 Defence Corridor Meeting held at Trichy on 16th March 2018 at Hotel Sangam Brief note on Defence Corridor in Tamilnadu

Provision for creation of two Defence corridors in the country has been announced by the Union Finance Mi nister in his budget for 2018 -19. One of these is being set up in Tamil Nadu and the other in Uttar Pradesh.The concept of a “ Defence Corridor” was initiated by Smt. Nirmala Sitharaman,  Honourable Union Minister for Def ence, when she addressed a recent interaction between the Ministry of Defence and representatives of vari ous industries in Chennai recently. She observed that Tamil Nadu already had a well established eco-system for manufacturing, as demonstrated in the automotive sector, which with right policies and investments, could be converted for defence manufacturing.  However since units involved in manufacturing were scattered all over the State, it would be desirable to identify three or four locations with concentration of such industries, and link them physically and infrastructurally to each other in order to optimize and share available resources required for design, testing and skill development, specifically for defence systems.

With recent policy changes introduced for making defence production more user friendly, many major industrial houses involved in manufacturing have entered the defence sector.  These are primarily  for manufacture of plat forms like ships, submarines, aircraft, helicopters, armoured fighting, artillery systems, etc.  These consist of sub-systems equipment  and components, which are primarily manufactured by companies in the MSME sector. Establishment of the defence corridor in Tamil Nadu is not only aimed at increasing India’s self reliance in the Defence Sector, but also create a minimum of One lakh jobs in Tamil Nadu and propel Tamil Nadu  in to leader ship position in defence production with a target of 30% of nationwide defence manufacturing. A series of interactions have already held at Hosur, Coimbatore  and Salem with all the stake holders to obtain inputs on formulating a policy for establishing the defence corridor. In Trichy, Ordnance Factory, Trichy has organized the programme.

Suggestions from Association & Defence Industries

  • Consultant panel for preparing DPR should be constituted from Expert from Defence Industries & Academia from Tamil Nadu
  • Skill Development Centre in the proposed clusters
  • Every cluster should have centralized Testing Facility
  • Government Contracts for Defence Procurement to be given only to organization with certified personnel
  • Third Party Certificatio
  • Use Ex-servicemen to the maximum extent possible to Manufacturing  Industry
  • Decision on Transfer of Know How & Know why to industries from DPSUs needs to be implemented in a User friendly manner.
  • Transition to Supply –chain management from Vendor Development
  • Quality System & Certifications procedure to be streamlined  an to be made accessible to vendor
  • Repeat orders on certified vendors without tendering process
  • Creation of Defence manufacturing fund by MoD for start ups
  • Import subsidy for capital goods
  • Monitoring Team to be constituted
  • Strategic partners should be mandated to out-source appropriate manufacturing requirements to MSMEs
  • Setting up Defence Export Promotion Council