RAJKOT: The increase in capital procurement budget to 68% for domestic industry in the defense sector is expected to increase output from Rajkot, the hub of engineering units, many of whom are engaged in making parts for defense equipment. There are at least 300 small and big units making parts for defense equipmentaccording to industry sources in Rajkot.
Over the last few years, the engineering units of Rajkot are bagging contracts from the Indian Railways as well as the defense ministry.
The Union budget also proposed to open up research and development for industry and startups in the defense sector.
“The private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organizations through the SPV model” said finance minister Nirmala Sitharaman in her budget speech.
This proposal will give a major boost to Rajkot which is more famed for its auto parts, bearings and forging.
Paresh Vasani, president of Rajkot Engineering Association said, “There are many units which are making parts for defense equipment. We expect the procurement by the government to increase from domestic companies which will give more business to Rajkot’s units. There are new units making defense equipment that are already planning to come up here.”
Bearing and forging, the two key engineering equipment required for most machinery manufacturing, has also got a boost.
The FM proposed revoking anti-dumping duty and countervailing duty (CVD) on stainless steel and coated steel flat products, bars of alloy steel and high speed steel. This will also help the local engineering units, especially those making kitchenware and hardware industry.
Over the last few years, the engineering units of Rajkot are bagging contracts from the Indian Railways as well as the defense ministry.
The Union budget also proposed to open up research and development for industry and startups in the defense sector.
“The private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organizations through the SPV model” said finance minister Nirmala Sitharaman in her budget speech.
This proposal will give a major boost to Rajkot which is more famed for its auto parts, bearings and forging.
Paresh Vasani, president of Rajkot Engineering Association said, “There are many units which are making parts for defense equipment. We expect the procurement by the government to increase from domestic companies which will give more business to Rajkot’s units. There are new units making defense equipment that are already planning to come up here.”
Bearing and forging, the two key engineering equipment required for most machinery manufacturing, has also got a boost.
The FM proposed revoking anti-dumping duty and countervailing duty (CVD) on stainless steel and coated steel flat products, bars of alloy steel and high speed steel. This will also help the local engineering units, especially those making kitchenware and hardware industry.
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