Chennai : Department of Defence Production Secretary Ajay Kumar on Wednesday announced the creation of a dedicated defence and aerospace small and medium enterprises (SME) fund, registered with the Securities and Exchange Board of India (SEBI), where a minority stake could be taken by investors.
This fund would help channelise investments into the two defence corridors announced by the Government in Tamil Nadu and Uttar Pradesh.
During a session organised by FICCI, ‘Offsets: Way forward towards a win-win framework’, held at the Defexpo 2018, Ajay Kumar shared the Government’s thought process on major reforms in the offset policy.
He said that the Original Equipment Manufacturers (OEMs) and the Government were both dissatisfied with the earlier policy and the Ministry of Defence wishes to indulge in a larger dialogue with all stakeholders.
He highlighted that the new paradigm would focus on three principles – investment in defence infrastructure like Government identified Public Sector Undertaking (PSU) / quasi-PSU projects, providing higher incentives for transfer of ‘Know Why’ and targeted offset discharge.
“Investments into testing infrastructure, training facilities and test beds would attract higher value of multiplier,” he added.
The Government has addressed the current concerns of OEMs of delays in offset discharge by putting in place a framework for ensuring ease in doing business.
In addition, measures such as facilitating third party certification based on data provided by the Registrar of Companies (ROC) subject to physical verification and statutory audits have also been taken. (ANI)