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TN small industries to take advantage of self-reliance in defense in Union budget

- February 3, 2022

Chennai, Feb 3 (BPNS)

The small industries of Tamil Nadu will be taking advantage of the announcement by Union Finance Minister Nirmala Sitharaman in the 2022 budget on more self-reliance or Atmanirbar in defense production. The Union finance minister has in the budget presented on February 1 said that 68% of capital procurement will be earmarked for defense industry in the 2022-23 budget which is 10% high than that was earmarked in the budget 2021-22.

Minister has in her speech said, “ Defense research and Industry will be opened up for industry, startups, and academia with 25% of defense R&D budget earmarked for it. Private industries will be encouraged to take up design and development of military platforms and equipment in collaboration with Defense Research and Development Organisation (DRDO) and other organizations through Special Purpose Vehicles (SPV) models”.

It is to be noted that several companies in Coimbatore, Hosur, and Tiruchi are already in the defense production and research sector in Tamil Nadu and are in association with the DRDO. The proposed defense corridor is also expected to create an ecosystem where industries will be encouraged to take up more defense projects.

Tamil Nadu has over 120 aerospace manufacturing companies and 700 suppliers to various defense Public Sector Undertakings (PSUs) already and with the new announcement in budget all these companies will get sizeable work for supplying components to major productions in the defense sector.

G. Satheesh Reddy, Chairman DRDO and secretary department of defense (R&D) in a statement said,” The DRDO is planning an R&D centre in Tamil Nadu defense corridor where industries will be groomed by our scientists. An SPV will be formed soon which will lead to industries partnering DRDO in all stages of the supply chain from design, development, testing, production, marketing, and exports “.

The DRDO chief also said that this was the apt time for the Indian industries to take advantage of the latest policies of the government and join hands with DRDO to deliver defense systems and technologies to Indian defense forces.

Other than small industries in Tamil Nadu spread across the industrial hubs of Coimbatore, Tiruchi, and Hosur, big companies in the state like L&T and Ashok Leyland are already production partners of DRDO.

The DRDO, according to insiders will soon be grooming and developing several Tamil Nadu companies – both small industries and big companies, to have design and development capabilities.

It may be noted that the Main battle tank Arjun Mk-1A was developed by Combat Vehicles Research and Development Establishment in Chennai in collaboration with other DRDO labs.