India, Dec. 6 -- The federal government is investing $40.5 million to grow Northern Canada's defence industry and strengthen Arctic security, Minister of Northern and Arctic Affairs Rebecca Chartrand announced Friday.

The funding will be delivered through the new Regional Defence Investment Initiative (RDII), which will be administered in the territories by the Canadian Northern Economic Development Agency (CanNor).

The programme will run over three years and support businesses and organisations in Nunavut, the Northwest Territories and Yukon.

The initiative is designed to help northern and Indigenous small- and medium-sized enterprises scale up, innovate and access opportunities in national and international defence supply chains.

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