The new defence procurement procedure-2011 aims at achieving substantive self-reliance in the design, development and production of equipment, weapon systems and platforms for defence in as early timeframe as possible, minister of state for defence M M Pallam Raju said here on Sunday.

The policy aims to create conditions conducive for private industry to take active role in this endeavour, he said, speaking at the valedictory function of a three-day exhibition organised by national small industries corporation ltd and federation of Indian micro and small and medium enterprises.

The policy also aims to enhance the potential of SMEs in indigenization and to broaden the defence research and development base in the country, he said.

Raju said preference will be given to indigenous design development and manufacture of defence equipment.

Policies will be put in place to encourage ordinance factories, defence PSUs and private sector to strengthen their research and development wings so that constant upgradation and improvement in systems is possible, he said.

The government will set up a separate fund to provide necessary resources to public/private sector including SMEs as well as academic and scientific institutions to support research and development of defence equipments/systems enhancing cutting edge technology, Raju said.

Noting that the new policy gives special emphasis to SMEs, he said it enhances the potential and offer greater opportunities in defence sector for SMEs.