Def Corridor Will Revive DPSUs: Nirmala

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Def Corridor Will Revive DPSUs: Nirmala

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Defence minister Nirmala Sitharaman on Friday chaired an interaction meeting with industrialists here ahead of formulating a policy on establishing a defence corridor. Also called the Tamil Nadu Defence Production Quad (Quadrilateral), the project is being proposed with a niche for Trichy. She said that Trichy had an established ecosystem to address the needs of the defence corridor.

The union minister said that the purpose of the corridor was to revive the Defence Public Sector Undertakings (DPSUs) and to encourage Micro, Small, and Medium Enterprises (MSME) to work closely with PSUs for defence indigenisation.

After the provisions for creating two defence corridors was announced in the Union budget, the defence ministry had selected Tamil Nadu and Uttar Pradesh to set up defence products manufacturing corridors.

Defence officials said that Tamil Nadu was chosen because of its expertise in designing and manufacturing components and also citing the presence of top educational institutes. Trichy found a place in the quadrilateral as it had more than 2,500 MSMEs of which a majority were serving as ancillary units of BHEL. The proposed quadrilateral connected Chennai, Trichy, Coimbatore, Salem and Hosur from there to Bengaluru, a hub for aerospace industries. “We are rejuvenating the Defence Public Sector Undertakings like Ordnance Factory of Tiruchirappalli (OFT),” Nirmala Sitharaman said adding that MSMEs were the heart of defence corridor and with their support the proposed corridor would make the DPSUs competent enough to fulfil the demand in defence sector.

In a veiled criticism of Hindustan Aeronautics Limited (HAL) Bengaluru, the Union minister said that defence ministry had placed an order for 123 Tejas Light Combat Aircraft (LCA). However, HAL was able to hand over only six to eight per year which was insufficient to meet the requirements of Indian Air Force. “Air Force demands fighter aircraft at the earliest while HAL could supply only limited number of aircraft per year. Why not expand the production units or share the skills to manufacture LCA in some other plant? Perhaps in Tamil Nadu,” the defence minister said.


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Def Corridor Will Revive DPSUs: Nirmala

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