Military equipment: Foreign original tool makers in Howrah keen on extending support MSMEs as defence offset partners

KOLKATA: In what can be termed as a boost to the start-ups in West Bengal, foreign original equipment manufacturers (OEMs) in Howrah have expressed interest to support MSMEs as defence offset partners in building military equipment.

A conclave was organised by the Bharat Chambers of Commerce (BCC) for transforming the defence sector by creating opportunities for MSMEs in partnership with the department of defence production of the Ministry of Defence (MoD). It was aimed at encouraging MSMEs to venture into the defence supply chain of the country and contribute towards the booming defence exports market.

Speaking on the budgetary incentives that the government has rolled out to support startups and defence manufacturing industries, Anurag Bajpai, IFS, joint secretary, Defence Industries Production (DIP), MoD, informed that in the last Central budget, 68 per cent of the military’s capital acquisition budget was earmarked for purchasing locally produced weapons and systems to boost self-reliance in the defence sector. In addition to this, 25 per cent of the defence R&D budget was set aside for private industry, startups and academia.

Praveen Kumar, Deputy Director General of the Defence Offsets Management wing, Department of Defence production, requested the MSMEs to visit the military-industrial complex and get in touch with the OEMs for sourcing the business deals. He felt soon a regional outreach programme with foreign OEMs and MSMEs needs to be organised in Kolkata. Air Chief Marshal Arup Raha (Retd.), Advisor, Defence sub-committee of BCC, observed that MSMEs can have a profitable business in MRO activities since the money spent in the entire lifecycle of an aircraft is huge and it requires upgradation every 20 to 25 years.

He emphasised that ventures with the Armed Forces would ensure a profitable partnership for a period of 30 to 40 years if quality products are supplied.