CHENNAI: The Ministry of Defence plans to set up 6-8 product testing facilities to enable the micro, small and medium enterprises (MSME) to test their products for defence supplies, said a senior official here.

The first testing facility, likely for drones, is to come up soon, he said on Friday.

"In order to provide MSME's a level playing field in defence supplies and also expand the vendor base, the Ministry of Defence has come up with a scheme to set up 6-8 product testing centres in the defence industrial corridors," Rear Admiral A. George, Additional Director General Quality Assurance (Warship Projects), told reporters.

He was here to participate in the Quality Assurance-Industry Conclave South Zone.

The government has allocated about Rs 400 crore for this scheme whereby it would provide a grant-in-aid up to 75 per cent of the cost of equipment for the product testing facility, said George.

"The balance 25 per cent has to be brought in by a consortium of private investors. The product test facility will be a special purpose vehicle (SPV)," he added.

According to officials, while the test facilities are to come up in the two defence corridors planned in the country, one facility outside the defence corridor may come up early in order the meet the demand.

Officials said discussions are on with the industry players for setting up product test facilities.

Earlier at the conclave, George formally awarded the `Green Channel Status' to L&T Valves - the valve manufacturing division of Larsen & Toubro group.

The Green Channel Policy was introduced by the government in 2017 as a part of its Make in India scheme. This allows manufacturers to self certify their supplies to the defence services.

The companies with a turnover of Rs 1,000 crore during the last three years and are profitable for three years out of the last five years are eligible to apply for the 'Green Channel Status'.

The Green Channel certification is valid for five years and can be renewed.

"It is a recognition of the outstanding standards the L&T Valves maintains and the commitment of its employees to develop cutting-edge solutions. This will take us a step closer to the vision to become the most valve company in the world," Mahesh Joshi, Chief Executive and Director, L&T Valves was quoted as saying in a statement.

The L&T Valves caters to oil and gas, power, petrochemicals, chemicals, water as well as defence and aerospace.

Published On : 22-11-2019

Source : Economic Times