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Karnataka woos aerospace, defence manufacturing firms
State plans to set up a defence manufacturing zone, puts final touches to an aerospace policy
Chitradurga, around 200km north of Bangalore, has become an attractive destination for defence manufacturing as science and research organizations, including the Indian Space Research Organisation, have set up facilities in the district.
Mon, Jan 07 2013. 09 55 PM IST
Bangalore: The Karnataka government is wooing aerospace and defence manufacturing companies by setting up a defence manufacturing zone and putting the final touches to an aerospace policy in the state.
State industries minister Murugesh M. Nirani said a draft aerospace policy is before the state cabinet for consideration and will be cleared before the budget session, by March. We are also establishing a defence manufacturing estate in Chitradurga district, while an aerospace park in Bangalore is already in an advanced stage, he said.
Chitradurga, around 200km north of Bangalore, has become an attractive destination for defence manufacturing as the Indian Space Research Organisation (Isro), the Defence Research and Development Organisation (DRDO) and the Bhabha Atomic Research Centre (BARC) have set up facilities in the district. The Indian Institute of Science (IISc), based in Bangalore, has established a second campus in the district focused on research.
According to the defence manufacturing proposal, reviewed by Mint, serviced land in the industrial estate in Chitradurga will be made available to potential investors willing to set up facilities. Serviced land is land provided with infrastructure and other facilities such as power, water supply, roads, sewerage. This will be an ideal position for the estate since the proximity of Isro, DRDO, IISc and BARC will result in demand for supporting ancillaries, the document said.
A government official, speaking on condition of anonymity, said the state has identified 50-100 acres for the project and is shortlisting private partners. The partner will be in charge of developing industrial sheds, roads, drainage, power, and data facilities. The government has appointed Crisil Infrastructure Advisory to prepare a pre-feasibility report for the project.
Under the draft aerospace policy reviewed by Mint, the state aims to attract $4 billion before April 2017 and generate employment for 40,000 people.
It expects to finalize the policy in a few weeks, before the state budget is announced.
Among the significant policy measures being undertaken are the establishment of the Bangalore Aerospace Park and the Bangalore Aerospace SEZ (special economic zone) in a private-public partnership. Both the park and the SEZ will be established near Bangalores international airport. The state will also offer incentives such as a Rs.5-crore anchor unit subsidy, exemptions from electricity duty, interest-free loans, and entry tax exemptions for plant machinery and capital goods, according to the policy document.
PricewaterhouseCoopers, in a 2011 report, noted that Karnataka has positioned itself as an aerospace destination, with several education, scientific and technical educational institutions that firms could leverage. While HAL (Hindustan Aeronautics Ltd) was established in Bangalore in 1940, over the last few years, several major aerospace companies have established offices in Bangalore to exploit this expertise, said the government official mentioned earlier.
In 2009, Boeing Co. launched a research and technology unit in Bangalore to collaborate with Indian research and development organizations. Airbus manufacturer European Aeronautic Defence and Space Co. began research operations in the city in 2009 with the establishment of an innovation unit, while Rolls-Royce Holding Plc. and HAL signed a pact in 2010 to manufacture aircraft engine parts.
Karnataka woos aerospace, defence manufacturing firms - Livemint
