Tamil Nadu's "Make in India" defence mantra

The Minister also encouraged private players from industry to contribute to defence production sector. She announced that the state’s first Defence Expo will be conducted between April 11 – 14, on the East Coast Road here. 

The windfall for the state was made official soon after the Union Budget on February 1, where it was announced that Tamil Nadu is one of the two states chosen for the country’s first defence production corridor. 

Vinod Surana, ASSOCHAM Tamil Nadu and Southern Region Development Council, said that indigenisation didn’t take off until now, due to the restricted nature of defence production, ownership ambiguity and instability in procurement after development of technology. 

Make II procedure allows suo-motu approach from the industry side, who can suggest projects, especially those which are currently imported. The ownership will be with the industry that develops the product, with ‘March-in’ rights for the government. 

Make II procedure reduces the total time from in-principle approval to placing of order by 50 per cent. In addition, once the Request for Proposal (RFP) is issued, the industry who wins the bid will get the order. 

The idea is to also encourage newer MSMEs, SMEs and start-ups to not only produce components for defence technology but also design innovative indigenous technology. 

“Making in India will be much cheaper, with a margin of 20-50% than current spending on importing defence equipment,” said Surana. In January, India successfully test-fired Agni 5 ballistic missile, which features main components produced by the industry in Tamil Nadu. 

Around 35 companies from Tamil Nadu have already signed Transfer of Technology with DRDO, including MRF, which manufactures Aeromuscle Tyre indigenously developed for the IAF Sukhoi to the Indian Air Force. 

In addition, Kattupalli-based L&T Shipyard indigenously developed the Floating Dock Navy – 2 and interceptor boats for the Indian Coast Guard, among others. Coimbatore District Small Industries Association (CODISSIA), a 5,000-strong consortium, was granted Rs 20 crore for setting up a Defence Innovation Centre. Indigenisation had helped save Rs 10,000 crores between 2013 and 2016.

Lt Gen Sarath Chand, Vice Chief of Army Staff, had, at the meet, said that the state too should take an initiative to boost defence production. 

“For example, Codissia had decided to set up a defence industrial complex at a self-funded investment of Rs 100 crores. Tamil Nadu has a lot of industry cluster here. We would recommend the state government to take a cue from Codissia and establish a special defence economic zone,” he said. 

The Indian Navy has been on the forefront of the indigenisation drive, with 15-year-long Indian Naval Indigenisation Plan, started in 2015. According to experts from the armed forces, Chennai’s enormous intellectual resources and Coimbatore’s skill availability can be combined to boost defence production.