GoI new scheme: Rs 400 crores for testing MSME Defense products

The Government of India is planning to launch a new scheme to test defense products manufactured by MSMEs. In order to achieve this, the Ministry of Defence has allocated Rs 400 crores.

Features of the scheme

The test units that are to function under the scheme will be installed in north and south defence corridors. Under the scheme, 75% of the cost of equipment for the testing units will be provided by the Central Government. The first test facility is to be launched for drones.


Government is working to increase its defence exports. This is being done to achieve the set target of Rs 90,000 crore by the end of 2019-20 financial year. To achieve this, several initiatives are being launched. To mention some, recently DRDO offered free access to its 450 patents.

The launch of new scheme will help in achieving the target. It will also aid the startups entering defence production.

The announcement was made in the Quality Assurance-Industry Conclave that was held in Chennai on November 23, 2019. In the conclave, L&T was provided with the “Green Channel Status” under the Green Channel Policy.

Green Channel Policy

The policy was launched by the Ministry of Defence. The policy provides eligibility criteria for firms to obtain Green Channel Status. It also defines the constitution of green channel committee, defect investigation, submission of bank Guarantee, etc.

The nodal agency implementing the policy is Directorate General of Supplies and Disposals (DGS&D)

Under the policy, when a firm gains the “Green Channel status” it can self-certify its products for their quality.




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