IIA Defence Production Facilitation Centre (IDPFC)

Introduction :

India is the world’s largest military hardware importer and among top five military spenders. To meet growing modernisation needs of Indian Armed Forces, the Ministry of Defence will need to acquire equipment worth over $25,000 Crore by 2027. However, recent estimate shows that the current delivery capacity of the Defence industry sector in India is $7,500-8,000 Crore annually. This means the ratio of indigenous to imported equipment is stagnating at 30:70. To achieve the aspirational target of manufacturing 70 per cent of Defence equipment indigenously, it is needed to incentivise private enterprise for development of large scale R&D and manufacturing capabilities. It is therefore necessary to increase the production level of defence manufacturing unit and establish new units for defence manufacturing to cater to the growing need of defence sector of India. We can also reverse the flow of trade: from being the largest importer of defence items to become the largest exporter of defence goods as well. So to provide the needed thrust to the Defence Manufacturing in India the Hon’ble Union Finance Minister Mr Arun Jaitley announced setting up of two Defence Industrial Corridors in the country through his budget speech on February 1st 2018. Thereafter, Hon’ble Prime Minister Mr Narendra Modi during U.P. Investors Summit 2018 held in Lucknow on 21st February announced setting up of Defence Industrial Corridor in Bundelkhand region of Uttar Pradesh. The second Defence Corridor is being set up between Chennai and Bengaluru. As per the announcement of Defence Production Corridor in U.P. (Bundelkhand) and Tamil Nadu (Chennai) and to support the Make in India campaign for defence manufacturing, it was proclaimed by the Government to provide the MSMEs all the needed support and assistance through different policies and incentives for active participation in Defence Production in India. Defence production is a high tech and precision manufacturing activity. Stringent quality standards are also required to be maintained. MSME’s generally are not equipped to produce such products without handholding services from Industry Associations and the Government. Indian Industries Association (IIA) therefore decided to set up “IIA Defence Production Facilitation Centre” (IDPFC) at its Head-Office at IIA Bhavan in Vibhuti Khand, Gomti Nagar, Lucknow for providing all the necessary support and assistance to MSMEs for defence manufacturing.

IDPFC will provide the following services to MSMEs :

  • Organise Defence-Industry meets, seminars and conferences for facilitation of MSMEs.
  • Provide the information and data related with Defence Manufacturing in India to MSMEs.
  • Help the MSMEs by providing them handholding support for starting their manufacturing unit in the U.P Defence Corridor as well as for vendor registration with Defence PSUs and Indian Defence Organisations.
  • Work as a link between MSME and Defence Organisations.
  • Provide MSME all the necessary support for availing the incentives and subsidies announced by the Central and State Governments as and when required.
  • Help in resolving their issues & problems.
  • Provide feedback on policy issues to Defence Ministry Govt. of India and to the Defence Department of State Government and to get the timely response from them.
  • Organise exhibitions of defence products & supplies as well as items required by Defence establishments for import substitutions.
  • To constitute an “IIA Defence Production Committee” & maintain a separate directory of Defence Production Industries so that they are able to establish business links for mutual benefits as well as discuss common issues and problems for taking up with the Government through IIA at appropriate level.

The Defence Industrial Corridor proposed in the arid zone of Bundelkhand, would span several districts for backward linkage viz. Aligarh, Agra, Jhansi, Kanpur, Lucknow, and Chitrakoot. An investment of Rs. 20,000 Crores is likely to flow to the Corridor. Low cost of land and low wage rate with adequate supply of manpower will be an attraction of the UP Defence Industrial Corridor & it will serve as an engine for economic development and growth of regions of UP, especially Bundelkhand region. Bundelkhand will benefit from the six-lane highway which the Uttar Pradesh Government has proposed to build up from Chitrakoot to Jhansi and will provide necessary infrastructural support for the Defence Production Units . Traditionally, UP has possessed skilled workmanship in metals, besides having a vast defence manufacturing base in Kanpur with almost 6 public sector undertakings manufacturing arms and defence related wares. However, these were never leveraged on big scale by successive governments, but this Defence Corridor will definitely provide the needed impetus to the Defence Manufacturing in Uttar Pradesh & will play a significant role in industrial development of Uttar Pradesh simultaneously providing job opportunities to the potential unemployed youth workforce. The Centre had already announced to set up common facility centres in the corridor to incentivise private companies set up shop and cut their production cost.

What is a Defence Industrial Production Corridor :

A Defence Corridor refers to a route or a path along which domestic productions of defence equipment by public sector, private sector and MSMEs are lined up to enhance the operational capability of the defence forces. The Government has now opened up private investment in defence production including liberalising foreign direct investment.
Apart from improving the connectivity of the defence forces, the move will encourage domestic production of defence equipment’s and benefit all small and medium manufacturers along the corridor. A number of initiatives have been taken to develop and nurture intrinsic defence production capability to make the Nation self-reliant for meeting our defence needs.

Opportunity for MSMEs :

Quality is crucial for precision products in Defence, the Micro, Small and Medium Enterprises (MSMEs) can help in producing small fabrications and various components that can be integrated.
MSMEs need to establish networking to pool their resources for manufacturing and catering orders. IDPFC will try to form group of MSME’s which may develop as aggregators, build capacity and boost the manufacturing value chain. This group would facilitate better B2B (business to business) interactions too and spur better procurement and supply management.

An Introduction:

As per the announcement of the Hon’ble Prime Minister for establishing U.P Defence Industrial Corridor at Bundelkhand , Department of Defence Production - Ministry of Defence (MoD), Govt. of India entrusted Indian Industries Association (IIA) to organise consultative Industry Meets on “U.P Defence Corridor” at Agra, Lucknow and Kanpur for direct interaction with the MSME Entrepreneurs of Uttar Pradesh. These Industry Interactive Meets were successfully organised by IIA with the active involvement & support of Department of Industrial Development Govt. of U.P on 8th, 9th and 14th May 2018 at Agra, Lucknow & Kanpur respectively.
All the three meetings were highly successful and were attended by more than 600 delegates including more than 450 MSME Entrepreneurs.

Industry Interaction : Defence Corridor in U.P. held at Lucknow on 9th of May 2018

  • Brief : About the Programme

    Industry Interaction : Defence Corridor in U.P. held at Lucknow
    Venue : IIA Bhavan, Vibhuti Khand Phase-2, Gomti Nagar, Lucknow.
    Date : 9th of May 2018 an
    Organised by : Indian Industries Association (IIA)
    Chief Guest- Mr. Subhash Ramrao Bhamre Union Minister of State for Defence, Govt of India

    Dignitaries & Participants :

    • Hon’ble Industry Development Minister U.P – Shree Satish Mahana,
    • IIDC U.P. - Dr Anup Chandra Pandey IAS,
    • Additional Chief Secretary & CEO UPEIDA - Shree Awanish Kumar Awasthi IAS,
    • Secretary IID U.P. - Shree S.K. Yadav IAS,
    • Special Secretary IID U.P. - Shree Ankit Kumar IAS,
    • Shri Rajib Kumar Sen - Economic Advisor, Department of Defence Production-MoD,
    • Lt. Gen Subrata Saha ,
    • Officers from Indian Army Air Force & Navy, DRDO, HAL, OFB, BEL & BEML etc.
    • MSME Unit Owners from various parts of U.P. were also invited for participation in the Industry Interaction Meet for U.P. Defence Production Corridor & to understand the gravity of defence demands of India.
    The dignitaries addressed the audience & elaborated the aspects & potential of this Defence Corridor Project. Presentations were made by the Defence Production Department - MoD Govt. of India & Department of Industrial Development Uttar Pradesh Government to discuss the strategic action plan planned prepared by Central & State Government to accomplish this task by active involvement of the MSMEs. This session was followed up by the Industry Interaction Session through which the MSME Unit Owners of U.P. directly interacted with the Experts regarding their queries related to technological, managerial, operational, supply chain management, administrative , manufacturing , research & development, subsidies & promotional activities & other issues related with the Defence Corridor Project.

  • Programme Schedule
  • Presentation & Videos
  • Participant List
  • Picture gallery
  • Press Coverage

Industry Interaction : Defence Corridor in U.P. held at Kanpur on 14th of May 2018

  • Brief : About the Programme

    Industry Interaction : Defence Corridor in U.P. held at Kanpur
    Venue : Panki Industrial Area Office Premises. Kanpur
    Date : 14th of May 2018
    Organised by : Indian Industries Association (IIA)
    Chief Guest: Shri Satish Mahana, Industry Minister U.P.
    Guest of Honour: Dr. Anup Chandra Pandey, IIDC U.P

    Dignitaries and Participants :

    • Shri Ranveer Prasaad – M.D. UPSIDC,
    • Shri Ravindra Kulsheshtra - Co-ordinator of Defence Corridor ,
    • Shri Vivek Raghav, DRDO,
    • Shri Mayank Yadav , DRDO,
    • Brigadier Sundara Itanal -DGQA,
    • Shri Manoj Yadav from BHEL Defence Unit,
    • Shri Kuldeep Tinku -Wing Commander & Joint Director Ammunition,
    • Shri M.K. Mishra - AGM HAL Kanpur,
    • Shri Suneel Kharad - G.M. BEML
    • Other invited guests from Government Departments, Armed Forces, Defence PSUs , Manufacturing Industry Sector & MSMEs.
    This meet was of greater significance because Kanpur is the most favoured destination for defence production in Uttar Pradesh.
    After the inauguration of the event the presentation were made by the Government Department & Ministries for the invited guests to make them understand the project & its relevance for the MSMEs in Uttar Pradesh.
    Hon’ble Minister Shri Satish Mahana emphasized on the steps taken by the state government for timely completion of the Defence Corridor Project & informed the audience about the policy measures of Uttar Pradesh Government for involvement of small MSME Units in Defence Production.
    The Programme concluded by taking oath to work with firm determination to make this Project function with full efficiency as soon as possible with a clear vision of

  • Programme Schedule
  • Presentation & Videos
  • Participant List
  • Picture gallery
  • Press Coverage

Industry Interaction : Defence Corridor in U.P. held at Agra on 8th of May 2018

  • Brief : About the Programme

    Industry Interaction : Defence Corridor in U.P. at Agra
    Venue : Hotel Clarks Siraj ,Taj Road-Agra
    Date : 8’th of May 2018
    Organised by : Indian Industries Association (IIA)

    Dignitaries and Participants :

    • Shri Santosh Kumar Yadav, IAS Secretary, Infrastructure & Industrial Development ,Gov. of Uttar Pradesh
    • Gp. Capt. Mr. C.S Chawla, DPO (ES) Department of Defence Production, Ministry of Defence, Govt. of India
    • Mr. Ankit Agarwal, Sp. Secretary IID U.P.,
    • Shri. Mayank Diwedi, Senior Scientist , DRDO
    • Other invited guests from Government Departments, Armed Forces, Defence PSUs, Manufacturing Industry Sector & MSMEs also participated actively in this programme & made their expected contribution as well.
    After the welcome of the honourable guests and delegates by IIA, following presentation were made :
    • Presentation on “Investment Opportunities in Defence Corridor in Uttar Pradesh” by Shri Santosh Kumar Yadav, IAS Secretary, Infrastructure & Industrial Development ,Gov. of Uttar Pradesh
    • Presentation on Details of the Project from Defence by Shri. C.S Chawla- Gp.Capt., Defence
    • Presentation on “Single Window Portal- Niwesh Mitra ” by the representative of Udhyog Bandhu.
    After the presentations the Interactive Session started through which views were exchanged & the queries of MSMEs were answered by the Expert Panel.

  • Programme Schedule
  • Presentation & Videos
  • Participant List
  • Picture gallery
  • Press Coverage

Conference and Exhibition for Defence Corridor at Aligarh, U.P. on 11th of August 2018

  • Brief : About the Programme

    “UP Defence Corridor Conference and Exhibition at Aligarh”
    Venue : Hotel Royal Residency, Aligarh
    Date : 11th of August 2018
    Organised by : Department of Defence Production, Ministry of Defence, Government of India
    Chief Guest - Mrs. Nirmala Sitharaman - Hon’ble Defence Minister, Government of India
    Presided by : Shri Yogi Adityanath Ji - Hon’ble Chief Minister of Uttar Pradesh

    Dignitaries :

    • Dr. Subhash R. Bhamre : Union Minister of State for Defence
    • Shri Suresh Rana : Member of Parliament from Aligarh
    • Shri Satish Mahana : Industrial Minister Govt of U.P.
    • Dr. Anup Chandra Pandey : Chief Secretary U.P. Govt
    • Vice Chief of Army Staff : Lt. Gen. Devraj Anbu
    • Vice Chief of Airforce Staff : Air Marshal S B Deo
    • Assistant Chief of Material : Rear Admiral Rajaram Swaminathan
    • Shri Sunil Vaish : President, Indian Industries Association
    • Dignitaries and Representatives of various Industry Associations
    • Ambassadors from South Korea, France , Israel, Japan, Russia, Sweden, UK, USA.
    • Industrialist from India and abroad.
    • Representatives from Defence Manufacturing Units & Defence PSUs

    Programme Summary :

    A “UP Defence Production Conference and Exhibition” was organised at Aligarh on 11th August 2018 by UP Government with the cumulative support of Defence Ministry of India, Indian Defence Forces, Defence PSU to streamline the efforts being made for enabling Aligarh (one of the most prominent node of the UP Defence Production Corridor) to contribute to the Corridor with its full potential by taking benefit of its world famous cottage hardware industries, proficient artisans/workforce and easy availability of raw material. In the Inaugural Session the Defence Minister asked the entrepreneurs to come up with innovative ideas and manufacture products according to the need of the defence forces and assured that Army will directly purchase these products from them after the testing of these products by the trial and testing agencies of Defence. She also said that there is an urgent need to strengthen the training and investment to make “UP Defence Production Corridor” a success and asked the industries to aim for exporting to overseas customers also rather than fulfilling the defence needs of Indian Armed Forces only. Hon’ble CM Yogi Jee told that 236 hectares of land has been acquired in Aligarh for the Corridor also made a request to the Defence Minster to organise the Aero India Show of this year in Uttar Pradesh and he also assured her that UP is fully prepared and well-equipped to host this show and expected that this show would be very helpful in the preparation being made for the establishment of the “UP Defence Industrial Corridor”. The Investment Proposals of around 3,750 Crore have been received through this meet and some of the major investment proposals are as follows :

    • Hindustan Aeronautics Ltd. (HAL) - 1200 Crore
    • Ordinance Factory Board (OFB) – 1077 Crore
    • Military & Armed Forces Equipment Manufacturer (MKU) - 900 Crore
    • Bharat Electronics Ltd. (BEL) - 240 Crore
    • Bharat Forge - 200 Crore
    • PTC - 115 Crore

    In the Second Session of the event the Defence Officials of Indian Armed Forces and Ambassadors from abroad had an open discussion with the industrialist about the procurement needs of the defence forces and the products which are of great demand in defence sector keeping the modern scenario and the globalised defence market conditions in mind.

    In the Third Session the Dignitaries and Representatives from Defence PSUs interacted with the members of industry associations, defence manufacturers, suppliers & service providers. Lots of issues and problems were discussed and it was proclaimed to provide timely solution to all the problems that are coming to their way of defence manufacturing and supply. The Defence Exhibition was the centre of attraction among the visitors during this Defence Programme. The objective of this exhibition was to facilitate the interaction between industrialists and defence forces and promote exchange of expertise, technology and promote investment so that indigenous products can be manufactured in a more cost effective manner and India may become self-reliant in Defence Sector.

    Some of the prominent exhibits were as follows:

    • T-90 Tanks Made in Russia
    • Guided Missile Weapons
    • Green Toilets
    • MI-17 Helicopters
    • Zaguar, Sukhoi and Dornier-228 Aircraft
    • Radars made of the components imported from Israel & UK
    • Bio-digester green toilet manufactured by DRDO Gwalior

    The industrialist of Aligarh Region were very enthusiastic and hopeful that this “UP Defence Production Corridor” would certainly provide a boost to the hardware industries of Aligarh and they were assured that the Government is fully committed to provide them better infrastructure, support and assistance to make them contribute to this project with the desired thrust.

  • Programme Schedule
  • Participant List
  • Picture gallery

Upcoming Defence Events being organised by IIA :

  • UP Defence Expo 2018 (UPDEX 2018) - at Kanpur

    • Date : 14-16 November 2018
    • Venue: Chandra Shekhar Azad University Ground, Kanpur

  • UP Defence Expo 2018 - at Chitrakoot

    • Tentative Dates : 28-30 November 2018

Public Sector Undertakings (PSUs)

Government Bodies (Defence Ministry and DRDO)

IIA Defence Production Facilitation Centre (IDPFC)

Contact Person –

Prabhat Dubey

IDPFC Incharge

Indian Industries Association (IIA)

IIA Bhawan, Vibhuti Khand, Phase-2 Gomti Nagar, Lucknow, Pin : 226010

Ph: +91-522-2720090, Mob : 8601855541,

E-Mail ID : [email protected]

Website : www.iiaonline.in

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