CHENNAI: To woo private sector and boost investment in defence corridor, the Centre is planning to set up an equipment testing infrastructure under a Special Purpose Vehicle (SPV), which will be dedicated for the industry on a public-private partnership (PPP) model, according to defence secretary Ajay Kumar.
This comes as two defence corridors in TN and Uttar Pradesh have wooed investment worth Rs 50,100 crore in both public and private sector, he said.
Speaking on the 4th Edition - Conference on Aerospace & Defence Manufacturing Technologies, organised by Tamil Nadu Technology Development & Promotion Centre of Confederation of Indian Industry (CII), he said 75 per cent of the cost of setting up the infrastructure will be provided by the SPV while the remaining will be mobilised by the industry.
“For those areas where testing is in demand, we would require such industries under CII or any other body to propose setting up of infrastructure under the scheme,” he said. He said export of defence equipment which requires specific approvals from the ministry, has grown from Rs 1,650 crore in 2016-17 to Rs 10,700 crore in 2018-19, nearly a seven-time growth in two years.
“For 2019-2020, we have set a target for Rs 20,000 crore for listed items. This is 100 per cent year after year. In the first quarter itself, we have exceeded Rs 5,000 crore and well on the way to achieve the target,” he said. “In addition to listed items, export of that equipment where no permission is required, our estimate is that another Rs 20,000 crore to Rs 25,000 crore worth of exports is happening.”
He said 90 per cent of exports is being done by private sector. He also lamented on lack of adequate testing facilities for unmanned aerial vehicles in the country. “It is a high potential growth area wherein a large number of start-ups, including big and small companies are working.”Kumar said the defence ministry is also planning to set up UAV test field area.
Rs 10,700 cr
Export of defence equipment which require specific approvals from the ministry has grown from Rs 1,650 crore in 2016-17 to Rs 10,700 crore in 2018-19