Maharashtra expects $5 billion investment in defence manufacturing

MUMBAI: The Maharashtra government today announced setting up of a Rs 1,000 crore fund for helping manufacturers in defence sector and said it expects an investment of $5 billion in this area in the state.

"We are setting up a fund of Rs 1,000 crore for helping all such manufacturers in defence sector," Chief Minister Devendra Fadnavis told reporters at a joint briefing along with Defence Minister Manohar Parrikar here.

The fund will support MSMEs (Micro, Small and Medium Enterprises) in the defence sector, he said.

"Maharashtra is the first state to frame a policy for defence manufacturing after private investment has been allowed," Fadnavis said.

The Chief Minister also announced unveiling of a defence and aerospace policy.

"When we presented our draft policy before the investors and manufacturers at the 'Defence and Aerospace: Make with Maharashtra' conference here today, their response was positive. We will finalise it soon after incorporating today's discussions," he said.

"They (manufacturers in private sector) made a few suggestions, including one on treating this sector as essential services. We will take a decision on this demand after consultations with the Defence Minister," he said.

"We have moved a step forward in this sector. Today defence manufacturers got to know about opportunities in Maharashtra," Fadnavis said.

Almost 25 per cent of the total ordnance factories of India are in Maharashtra alone, the CM said.

"We already have an edge over others," he added.

Meanwhile, the Defence Minister said Maharashtra's fund to support defence manufacturers would be a game changer.