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.
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.
On fishermen still missing, the Minister said the government was aware of it and she will hold discussions with the Union Home Ministry on sorting out the issue.
Earlier, Tamil Nadu Municipal Administration Minister S P Velumani submitted a memoradum seeking to set up a Defence park to manufacture and supply components to the sector to Seetharaman at the airport on her arrival here.
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