'Defence biz opportunity worth Rs 80,000 cr in West Bengal'
The business opportunities for the private and public sector in the defence segment in West Bengal could be between Rs 50,000 crore and Rs 80,000 crore over the next 10-15 years, a top official of GRSE today said.
Garden Reach Shipbuilders and Engineers Ltd (GRSE) chairman and managing director A K Verma said today the eastern region and West Bengal in particular has a strong presence of SME which could fetch business opportunity of Rs 50,000 crore to Rs 80,000 crore out of country's estimated Rs 6,00,000 crore in the defence sector over the next 15 years.
GRSE is a Public Sector Undertaking (PSU) under the administrative control of Ministry of Defence. Its business profile includes shipbuilding and ship repairing, engine assembling & testing and engineering products.
Currently, the mandatory localisation was 30 per cent, but the government was targeting to increase it to 70 per cent over a period of time.
KPMG defence and security advisory head Neelu Khatri said the defence offset policy of 2012 was expected to boost private participation in the defence procurement programme.
The policy makes mandatory 30 per cent local procurement for international defence suppliers.
Speaking at a CII organised defence conclave, Verma said the small-scale industries involved in the defence ancillary industry would also benefit from this.
About 4,000 such small-scale enterprises currently contributed to the defence equipment industry across the country.
Commenting on GRSE's growth opportunities, Verma said the defence PSU was eyeing orders of Rs 30,000 crore over the next ten years.