Over 30,000 defence items by DPSUs on the Srijan portal are offered to the industry including MSMEs for indigenisation: MoS Defence Mr. Ajay Bhatt
- IBEF
- July 25, 2023
Mr. Ajay Bhatt, Minister of State in the Defence Ministry, stated that the industry, including the Ministry of Micro, Small, and Medium Enterprises (MSMEs), has been offered more than 30,000 defence items and services on the Srijan portal to become partners in the indigenization process. During FY23, the minister said that the value of defence output for the first time exceeded US$ 12.22 billion (Rs. 1 lakh crore).
To promote the participation of MSMEs and startups in the development of defence technology, the government offers schemes such as Innovations for Defence Excellence (iDEX), Technology Development Fund (TDF), and Make Procedure under Defence Acquisition Procedure (DAP) 2020.
Mr. Ajay Bhatt further stated that the DAP 2020 includes specific provisions to support startups and MSMEs. Additionally, the Public Procurement Policy for MSEs Order, 2012 has been put into effect at Defence Public Sector Units (DPSUs), and it gives MSME bidders a pricing preference under specific circumstances. He also stated the government’s role in promoting local defence manufacturing and innovation through initiatives such as Innovations for Defence Excellence (iDEX), Technology Development Fund (TDF), and the procedure of procurement under Defence Acquisition Procedure (DAP) 2020.
Additionally, the Defence Ministry's Innovations for Defence Excellence (iDEX) project was unveiled in April 2018 with the goal of promoting innovation and technological advancement in the defence and aerospace sectors by partnering with businesses, particularly MSMEs and startups. Research and development initiatives are supported by iDEX through financing and other means.
According to the iDEX dashboard, iDEX has connected over 6,800 job seekers with three ministries, 16 DPSUs, and 19 incubators so far.
Furthermore, the Defence Public Sector Units, established the Public Procurement Policy for MSEs Order, 2012, which stipulates that MSME bidders receive price priority under certain circumstances.
In the financial year 2022-23 compared to the previous fiscal year, the Ministry of Defence, one of the biggest consumers of goods from MSMEs, virtually doubled its online purchases of goods and services from MSMEs and other vendors via the Government e-Marketplace (GeM) marketplace. According to GeM data, the ministry made purchases worth US$ 3.51 billion (Rs. 28,732.9 crore) in FY23, an increase of 90.4% from US$ 1.84 billion (Rs. 15,090.8 crore) in goods and services purchased in FY22.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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