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Emerging opportunities for MSME in Atmanirbhar Campaign and Import substitute

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Shri Sanjay Jaju, IAS, Addl. Secretary Dept. of Defence Production   was chief guest at seminar on “Emerging opportunities for MSME in Atmanirbhar Campaign and Import Substitute” held on 18/11/2021 at Nagpur.The Vidarbha Defence Industries Association had organised this seminar in cooperation with the Dept. of Defence Production, GoI. The JSR Dynamics and VED were co-host for the event.

In the opening remark he stated that strength of any Nation is its Military. Behind the Military is its Industries who supply the product when it is needed. There is need to change the concept for In-house indigenisation. Product may be costlier than import but it is worth as in the time of war import may not take place. Secondly, in import foreign exchange has gone forever but in indigenous products money is churned in India only. Therefore, dependency upon foreign technology is risky.

Budget of Defence ministry is 3rd highest and big chunk is available for MSME. It is right time to get into the supply chain system and take participation in defence manufacture though it is risky but profitable also.

Govt has changed many things and further changes are in the pipeline. Quality & Inspection next in line,which will bring level playing field for everyone and DGQA inspection will be for final acceptance only. 209 nos Indigenisation positive list is already out and after 2025 there will not be import of any items as all have to be manufactured in India under Atmanirbhar Bharat.

IDEX platform is instrumental in bringing the solution to the problems given by Services through Starts up and innovators. Services are projecting their problems and getting solutions through DIO (Defence Innovation Organisation)

Session I:Emerging opportunities for MSME in Atamnirbhar Campaign and Import substitute Industrialisation

AVM Shirish Deo (Rtd) stated that there is need to bring commonality in stamp duty for Bank Guarantee for MSME. This will be great relief to MSME in government Tenders.

Lt. Gen. Vinod Khandare (Rtd) stated that Innovation means what we need in future based on today’s constraint. Future war will not be fought physically but through Network Centric. Therefore, Innovation is here only.

Dr Jaijit Bhattacharya stated that there is need for management of technology. He quoted that in ancient time in South of India Wood Steel was produced and it was exported to Damascus. They used to make sword which was famous for its sharpness and quality. He also quoted that initially Canon used to be very heavy therefore Maratha produced Bi-metal canon which were light and efficient.

Dushyant Deshpande, convener of VDIA hosted the event and highlighted the importance of collaborative platform to transform by creating value therefore, outlinening the significance of VDIH like PPP platforms under the aegis of VDIA.

He further elaborated , the Vidarbha Defence Industrial Hub, a public Private Partnership initiative, is the brain child of legendary Late Lt.Gen.Ravindra Thodge, former MGO and Advisor to RM and Chairman VDIH.

The seed of this initiative was sown during his maiden Visit to Nagpur in 2016 when he was MGO. Then the VIA had organised a seminar at the same venue. Post retirement he settled in Nagpur and endeavoured to create ecosystem in the field Aerospace and Defence Production and Procurement.

He strongly felt that Nagpur has got apt infrastructure to be one of the major contributor in the development of Import Substitute Armament and technology along with aerospace engineering. The need of the hour is Skilled Manpower and Hand Holding for the MSMEs.

Thus we approached the Govt. Of Maharashtra in 2018 during Magnetic Maharashtra Event at Mumbai. And signed MOU to create UDAN a Centre of excellence, with the Mandate to train 40000 youths in five years, a corpus of 63 crores is sanctioned and Nirman an Integrated Manufacturing facility,Rs.30 crores as equity support from MIDC is sanctioned for the same. We have procured &7 acres of Land in MIHAN SEZ besides TASL n sector 10 on Plot no 4. We are awaiting the release of funds since two years and are hopeful GoM would release soon post pandemic normalisation.

We have strong linkages with OEMs from overseas too. We are stakeholders in INDIAN CHAMBER OF COMMERCE in SLOVAKIA Bratislava and INDO CZECH CHAMBER OF COMMERCE IN PRAGUE.

Our initiative is well poised to bring the desired change in NAGPUR ecosystem with the strong support of VIA, MIA, BMA, VED and the industrial peers like solar group, JSR dynamics. We are grateful to the eternal support of visionary industrialist of central India Mr. Satyanarayan NuVal ji.

Session II: Opportunities in India with Overseas Partners in Defence Sector

Facilitator Mr Shiv Kumar Rao – President, Vidarbha Economic Development Council

Interaction with Industries captains of Vidarbha

  1. C G Shegaonkar, President MIDC Industries Association
  2. Nitin Lonkar, Former President Butibori Industries Association
  3. Ramesh Patel, Convenor Automobile Cluster Nagpur
  4. Mahesh Tapase, Chairman Vibrant India Economic Council Mumbai

Mr. Shiv Kumar Rao stated that there is need for new model to provide financial assistance to MSME for survival after COVOD-19.

Shri C G Shegaonkar stated that their company has signed MoU with GIZ Germany and German Federal Government for Dual system technology through MSME New Delhi.

Mr. Nitin Lonkar stated that they should have access new market and business. Recovery of payment should also be timely for survival of MSME. There should be hand holding by the Government. The time for registration is very high as in one case it has taken almost 8 years to commence the production after application. Time for registration should not be more than three months and for commencement of production between 1 to 2 year only after opening of tender then only MSME will be joining in Atmanirbhar Bharat program of GoI in a mass. There should be Industrial visit to DPSUs for better understanding.

Mr. Ramesh Patel stated that they are equipped with all types of facilities for production of automobile parts. They only need detail production drawings and inspection schedule.

Mr. Mahesh Tapase stated that defence budget is 1/3rd of Govt budget. Therefore, there is big scope for MSME in Atmanirbhar Bharat program. For capital infusion VDIA can talk to Ministry of Finance and other related ministry for providing finance at subsidise rate.

Session III: Emerging Opportunities Post Corporatisation of Ordnance Factories

Facilitator Mr. Dilip V Gondnale Senior Deputy Director General (Rtd) and Member VDIA (Advisory Board)

Speaker are Mr. A N Srivastava Director (Operations) Yantra India Limited Nagpur and Mr. Sanjeev Kumar Bhola Addl. General Manager Ordnance Factory Chanda.

Mr. Dilip Gondnale stated that under Atmanirbhar Bharat intends to give freedom of operation and unleash the efficiency of Ordnance Factory Board and its 41 factories, government corporatize these in seven DPSUs. These were scattered all over India and there was duplicity of the work therefore they were bought under one roof technology wise.

Mr. A N Srivastava stated about the functioning of Yantra India Limited which is located at Nagpur and controlling 8 units. He also stated that with diversification YIL has obtained order for Axle from Indian Railways with a delivery of 1200 nos per month where MSME can participate for meeting the dead line. Another order of Axle is also expected. YIL has also got order for export of 155 mm ERFB empty shell. He also stated that they will make spare capacity available for MSME for which rules are being framed.

Mr. Sanjeev Bhola stated that in erstwhile OFB, MSME played vital role as they used to supply material worth Rs. 4000.00 crores and now it will raise to Rs. 7000.00 crores. We are ready to co-developed new items under R&D with MSME. MSME can approach us any time for any help.

Session IV: Facilitator Maj. Gen. Anil Bam (Rtd) Chairman Designate VDIA Nagpur.

  1. Vidarbha the Land of Eternal opportunities; Speaker Mr. Rahul Pande State Information Commissioner Govt. of Maharashtra

Mr. Rahul Pande stated that Vidarbha has lost two big chance in past. First one in last decade of Nineteen Century at Surjagarh due to non-availability of railway line for transport of iron ore, which is of the best quality in the world. Tata wanted to put up a factory but it could not be materialised due to under development of infrastructure. Second time again, Tata wanted to close down old Empress Mill and wanted to set up a state of the art Textile factory but that tile Govt of Maharashtra denied the permission for close down. The new factory was set up at Pimpri-Chinchwad Pune and rest is the history. Now VDIA has brought MSME under one roof and this time MSME should not miss the bus under Atmanirbhar Bharat.

  1. Unfolding of Make in India and Atmanirbhar Bharat Initiative – Media Perspective

Brig. S K Chatterjee (Rtd) Editor Bharat Shakti stated that from media perspective Govt. of the day is more proactive and ready to listen and make changes as suggested. These are quite evident from the perusal of DAP 2020 and over DPP 2016.

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