Kolkata, September 25, 2005 (Business Line)

REGULAR technology upgradation of the SME units is essential for them to be a supplier to the Defence sector, according to Mr Pranab Mukherjee, Union Defence Minister.

He was addressing members of the CII on Sunday at the First CII Defence SME Conclave.

According to him, the Government would place more stress on this aspect in the new Defence policy.

"There are three ways on procurement in the Defence sector. These are buy, buy and make, and make.

Inputs from the indigenous industry are more significant for the second two forms of procurement," Mr Mukherjee said.

The Minister also accepted one grievance of the CII members.

According to them, hardly any information is available on the demands and procurement needs of the Defence sector.

Mr Mukherjee said that in the new policy the Government would take steps so that there is an easy flow of information from the Defence sector to the SME sector.

Currently, some 40 per cent of the total procurement of the Ordnance Factory Board and the DRDOs is from the SME sector. The Minister also urged the representatives of this sector not to compromise on the quality of the products as it might lead to complete rejection.