In an attempt to enhance Gujarat's role in defence manufacturing, in line with the government's push for Atmanirbhar Bharat in the sector, the state government has initiated the process of setting up a special purpose vehicle (SPV).
The SPV is expected to help MSMEs in the state. The industry & mines department of the government has allocated a budget for the purpose. The government is also planning to introduce incentives to MSMEs under its industrial and defence and aerospace policies.
According to a report in The Times of India, the SPV will function as a full-time bridge between the defence forces of the country and local industries in the state.
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Pointing out that MSMEs in the state and other industries are already suppliers of equipment to India's armed forces, Mamta Verma, Additional Chief Secretary, Industry & Mines, said that the state can do much more.
According to her, Gujarat's potential remains largely untapped across the armed forces.
She claimed that in a detailed study, it was found that local industries in the state do not get enough opportunities to contribute to the growth of India's defence sector because of gaps in technical knowledge and limited access to defence establishments.
Plans are also underway to launch industry-defence connect initiatives to help defence forces list their needs, enabling local manufacturers in the state to supply products that meet those requirements.
Some of the leading defence players like Larsen & Toubro and Tata Advanced Systems Ltd. have facilities in Gujarat. The state is also developing a defence corridor around Dholera and Ahmedabad.