Maharashtra’s defence fund created some surprise winners

The fund also played a role beyond money. As a state-backed entity, it had access to policymakers and institutional buyers. It introduced SMEs to potential customers, advised them on governance, and guided some toward IPO readiness, Nimesh Desai of TechEra credits the fund with opening doors that had previously been shut: “They helped us not only with capital, but with strategy, governance, and IPO readiness—none of which was even on the table four years ago.”

- 

File photo of a warship at Mazagon Dock Shipbuilders.

Maharashtra’s early move with its fund gave it a unique edge over other states setting up defence plays. Soon after Atom Alloys won a national award from the Government of India in the safety and security category, Belorkar’s team moved in to fund them. Atom had developed a drone, fire and explosion resistant fuel storage and transportation system that has use cases across the defence forces.

Today, IDBI’s Belorkar says states such as Uttar Pradesh and Tamil Nadu regularly ask his team how to replicate the model. Whether they can do so without Maharashtra’s mix of timing, political backing, and institutional luck remains to be seen. Both states have already prioritized defence manufacturing, demarcating land corridors to establish new factories.