COIMBATORE (PTI): A Defence Innovation Centre would be set up in Coimbatore by industry body CODISSIA to assist small industries in manufacturing components for the defence sector, Defence Minister Nirmala Seetharaman said on Sunday.

The Defence Ministry would release Rs 20 crore as an initial funding to the Coimbatore District Small Industries Association (CODISSIA) to set up the innovation centre, she told reporters here after discussions with the association office-bearers.

"Ministry of Defence has recognised CODISSIA as an innovation centre required for defence production," she said adding the association had earlier submitted a proposal in this regard.

Seetharaman said small and micro units as well as startups, that can manufacture components required for the defence production, would be identified by the association.

"They can design or test their products at the centre," she said, adding the association had earlier submitted a proposal in this regard.

The Minister said the decision to set up the innovation centre was taken in line with Prime Minister Narendra Modi's "Make in India" programme and his dream of making India a defence manufacturing hub.

Defence Ministry had identified many micro, small and medium enterprises, which can meet the huge requirements of the sector, she said adding that being an industrial hub, Coimbatore had the potential to supply components to Defence production.

CODISSIA President V Sundaram said the city would have an exclusive defence park within three years.

Earlier, Tamil Nadu Municipal Administration Minister S P Velumani submitted a memorandum seeking to set up a Defence park to manufacture and supply components to the sector to Seetharaman at the airport on her arrival min Coimbatore.