INDIAN DEFENCE INDUSTRY CORRIDORS

The establishment of the Defence Industry Corridor is an important step both for the security of the nation, as well as for the development of Tamil Nadu and UP

- AIR MARSHAL SUKHCHAIN SINGH

A VIBRANT DEFENCE INDUSTRY IS A CRUCIAL COMPONENT OF effective defence capability as also to achieve national sovereignty and military superiority. In the Budget for the financial year 201819, the Government of India had announced plans to bring out an industry-friendly Defence Production Policy 2018 to promote domestic production by both the public and private sector of the Indian defence industry. In pursuance of the above, the Government has formulated a draft Defence Production Policy 2018. Success of the policy is dependent on a genuine partnership with the industry, which helps to build a robust defence eco-system and creates jobs across the country. Towards this end, two Defence industry Corridors are being set up in collaboration with the involved States to provide state-of-the-art infrastructure and facilities for setting up defence production units. A Defence Industry Corridor refers to a route or a path along which domestic production of defence equipment by units in both the public and private sector are lined up to enhance the operational capability of the defence forces.

LOCATION OF DEFENCE INDUSTRY CORRIDORS

The Defence Industry Corridors will be built as new industry clusters to create a synergistic supply chain of Micro, Small and Medium Enterprises (MSMEs) and original equipment manufacturers (OEMs) with necessary testing and certification facilities, export facilitation centres, technology transfer facilitation etc. The Government of India on its part will contribute 50 per cent of assistance subject to a ceiling of ₹3,000 crore to the Special Purpose Vehicle (SPV) set up for development of each Defence Industry Corridor. The SPV will take up projects for creating necessary eco-system for defence production in these Corridors. In each Defence Industry Corridor, one major cluster of defence production units around an anchor unit will be developed in one of the Nodes.