Bangalore, Oct 11 (KNN) Extending an opportunity for MSMEs to showcase their capabilities in defence sector production and find new buyers, MSME DEFEXPO 2013 is being organised here in December.
Organised by National Small Industries Corporation (NSIC) under the sponsorship of the Ministry of MSME, MSME DEFEXPO is an MSME sub-contracting and supply exhibition for Defence, Aerospace and Homeland Security.
The 3-day expo starting December-12 will have intensive interaction of MSMEs for business development with the leaders of defence and aerospace industry supply-chain together with industry partners, suppliers and technologists.
“The latest version of the offset policy has introduced a multiplier of 1.5 for MSME’s and which I am sure will provide bountiful opportunities for the MSMEs to play their rightful role in building strategic capabilities in the interest of the nation’s defence,” MSME Minister K H Muniyappa said in his message.
“The expo will provide platform for MSMEs to discover national and international business opportunities of outsourcing, collaborations and tie-ups. MSME DEFEXPO showcases products, technologies, services and network with key decision makers and strengthens customer relations,” said the organisers.
The expo will help global defence companies to find highly cost competitive and technologically advanced sub-contractors and suppliers from the Indian MSME sector.
The total defence capital expenditure envisaged during the 12 Plan Period 2012-2017 is estimated to be USD 120 billion.
At least 25 per cent of offset contracts flow to MSMEs which means a USD 9 billion offset market for them. As much as USD 10 billion (estimate) of purchases and sourcing from Indian defence PSUs, ordnance factories and the DRDO is currently done.
Ministry of Defence (MoD) has set itself a goal of sourcing 70 per cent of all defence equipment from Indian companies – public, private and MSMEs – by 2020.
The first-ever Defence Production Policy (DPP) released in January 2011 clearly articulates MoD’s agenda of supporting a domestic defence industrial base where a significant role for MSMEs has been envisaged.
According to the DPP, the MoD is setting up a separate fund to support research and development by Indian companies including MSMEs.
Also, the procurement policy requires all central government ministries and public sector units to source at least 20 per cent of their total annual purchases from MSMEs.
The Defence offset Policy encourages foreign original equipment manufacturers.
(OEMs) are to procure from MSMEs by granting multipliers that makes it easier for foreign OEMs to discharge offset obligation.
The NSIC has been working to fulfil its mission of promoting, aiding and fostering the growth of small scale industries and industry related small scale services/business enterprises in the country.