Rajkot: The increase in capital procurement budgets of up to 68% for the domestic industry in the defense sector is expected to increase the output of Rajkot, a technical unit hub, many of which are involved in making spare parts for defense equipment.
There are at least 300 small and large units that make spare parts for defense equipment, according to industry sources in Rajkot.
Over the past few years, the Rajkot Engineering Unit pocketed a contract from the Indian train and the Ministry of Defense.
The Union budget also proposes to open research and development for the industry and startup in the defense sector.
“The private industry will be encouraged to take the design and development of military platforms and equipment working with Drdo and other organizations through the SPV model,” Finance Minister Nirmala Sitharaman said in its budget speech.
This proposal will provide a big boost for Rajkot which is more famous for car parts, bearings and forging.
Paresh Vasani, President of the Rajkot Engineering Association said, “There are many units that make spare parts for defense equipment.
We expect the procurement by the government to increase from domestic companies that will provide more businesses to Rajkot unit.
There is a new unit of equipment that has planned to come to here.
“Bearings and fores, two main engineering equipment needed for most machinery manufacturing, also gets a boost.
FM proposes the manufacture of anti-dumping tasks and duty countervailing (CVD) on flat stainless steel products and coated, alloy steel stems and high-speed steel.
It will also help local engineering units, especially those that make the kitchen industry and hardware.