Govt promises level playing field for startups

Makes it easier to bid for military projects

The Defence Ministry will provide a level playing field to startup companies if they want to bid for military projects in the future, Defence Minister Nirmala Sitharaman assured young entrepreneurs.

Startups currently face a handicap while bidding for military tenders that come with pre-qualification criteria in terms of revenue, size of the company and with a clean track records for several years.

"All these handicaps are being removed to facilitate participation of startup companies in defence tenders. The bids will treat them equally. They will not be disqualified because they are small," Nirmala said at a FICCI conference here on Thursday.

India's first full-time woman defence minister, who took charge in September, said the defence acquisition council would clear all backlog relating to various procurements by December 31. She also said the ministry identified eight projects to be funded under the Technology Development Fund.

Nirmala said she was carrying out a major review of the 39 ordnance factories not only to make them more productive but also to reduce India's import dependence on arms and ammunition.

With 14% of global arms import, India occupies the pole position among importers of arms and weapons. Also, the share of import is raising steadily, according to a February 2016 report from the Stockholm International Peace Research Institute.

In 2011–15 India's imports were three times greater than either of its regional rivals - China and Pakistan. The major reason for high imports was Indian industry's failure to produce competitive indigenously designed weapons, the report said.

The defence ministry was tasked with identifying industrial corridors near an ordnance factory in order to create multiple military industrial zones involving private companies and public sector units.