Defence Ministry allocates Rs 400 cr to set up testing facilities for MSME

75 per cent of equipment at each unit to be financed by govt, rest to come from private investors; 6-8 facilities planned in south and north defence corridors

The Ministry of Defence has allocated Rs 400 crore for setting up facilities that would enable MSMEs to test the products they manufacture for the armed forces. The units will come in the South and North defence corridors.

Speaking at the Quality Assurance-Industry Conclave South Zone in Chennai today, Rear Admiral A George, Additional Director General Quality Assurance (Warship Projects) said the Ministry is planning to set up 6-8 defence product testing facilities for which it has allocated Rs 400 crore.

Stating that the scheme will be launched soon and the first test facility to come up was likely to be for drones, George told reporters that it was designed to provide MSMEs with a level playing field in defence supplies and also expand the vendor base.

The scheme would provide a grant-in-aid up to 75 per cent of the cost of equipment for the testing units, while the balance 25 per cent would be brought in by a consortium of private investors. Each facility will function as a special purpose vehicle (SPV).

L&T gets Green Channel states

Earlier in the day, L&T Valves Coimbatore, the valve-manufacturing division of Larsen & Toubro group, was awarded 'Green Channel Status’ under the Green Channel Policy introduced by the government in 2017 as a part of the Make-in-India scheme.

The status allows manufacturers to self-certify their supplies to the defence services.

L&T Valves will be the first private sector firm to get this status.

According to George, companies with a turnover of Rs 1,000 crore during the last three years and profitable for three years out of last five are eligible for apply for the Green Channel Status.

Green Channel certification is valid for five years and can be renewed.

L&T Valves caters to oil and gas, power, petrochemicals, chemicals and water sectors, apart from defence and aerospace.