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http://economictimes.indiatimes.com...h-closer-to-Bangalore/articleshow/6898744.cms
BANGALORE: Hyderabad has emerged as a serious competitor to Bangalore’s dominant position as an aerospace and defence hub thanks to an aggressive state government promotional campaign.
Andhra Pradesh has been projecting its capital as the best destination for aerospace investment as the globe’s biggest defence and aerospace vendors make a beeline for India. Additional support coming from city-based defence labs , private and public sector companies and the Aeronautical Society of India, Hyderabad chapter, who have made consistent attempts to turn the city into an aviation hub.
In the past few months, some of the country’s biggest business groups, Tata and the Mahindra have announced plans to expand or set up aerospace related ventures in Hyderabad, giving a boost to the AP government’s efforts.
On Sunday, Tata Group chairman, Ratan Tata, announced that his group will focus all its future defence and aerospace ventures in and around Hyderabad. In addition to the 295-acre SEZ, where it is a major investor, the group’s JV with Israeli Aircraft Industries, (IAI), has also asked for 75 acres more in Ibrahimpatnam, near Hyderabad , to make critical defence technologies.
“We have a locational advantage. We feel we have the appropriate infrastructure to provide the defence industry with their requirements,” Sam Bobb, principal secretary in the Andhra Pradesh chief minister’s office, told the Economic Times.
The $7.1-billion Mahindra & Mahindra , Tata’s rival in aerospace, has also asked for 50 acres in Ibrahimpatnam for defence projects. Mahindra is also promoting a 250-acre aerospace SEZ outside Bangalore, but the project has not taken off, due to land acquisition issues, which could delay any progress for at least another 12-18 months. The Tata SEZ, on the other hand, already has tenants that include diversified manufacturer Punj Lloyd and government-controlled undertaking Midhani.
“The city’s infrastructure has to be taken care of, which includes upgrading roads, providing smooth access to sea-ports and airports. This where Hyderabad probably scores over Bangalore, which has massive transportation issues. The government needs to respond to industry’s needs much faster,” S Ramaseshan, head, Mahindra Satyam, Aerospace Engineering Solutions said.
FLIGHT PATH
Hyderabad scores due to:
Better implementation of SEZ policy
State government creating infrastructure specifically targeted at the aerospace and defence-focused companies
Land costs are generally seen to be lower than those in Karanataka, a major incentive for potential investors looking to set up manufacturing, maintenance, repair and overhaul facilities in the aviation sector
Bangalore loses out due to:
Infrastructure issues have been a serious cause for concern for existing as well as potential investors. Transportation bottleneck a big dampener
Karnataka’s poor record in power generation growth is not expected to improve anytime soon
Karnataka’s special economic zone policy yet to be implemented to its fullest degree. The proposed aerospace SEZ yet to take off
Andhra goes all out to woo investors
While Bangalore still ranks ahead when it comes to attracting attention from the global aerospace and defence vendors, the gap between the two cities is closing faster than anticipated , as the Andhra Pradesh government goes all out to attract investors, in what it clearly believes is a sunrise sector.
“We have the land, and are developing the necessary infrastructure exclusively for these sectors , which includes providing adequate power, offering a 50% value-added tax reimbursement and ensuring fully-developed infrastructure, along with complete connectivity,” pointed out Mr Bobb. Bangalore-based infrastructure giant GMR, which also set up a 250-acre SEZ at Shamshabad in 2008, acknowledges the sustained interest in the city as an aerospace hub.
BANGALORE: Hyderabad has emerged as a serious competitor to Bangalore’s dominant position as an aerospace and defence hub thanks to an aggressive state government promotional campaign.
Andhra Pradesh has been projecting its capital as the best destination for aerospace investment as the globe’s biggest defence and aerospace vendors make a beeline for India. Additional support coming from city-based defence labs , private and public sector companies and the Aeronautical Society of India, Hyderabad chapter, who have made consistent attempts to turn the city into an aviation hub.
In the past few months, some of the country’s biggest business groups, Tata and the Mahindra have announced plans to expand or set up aerospace related ventures in Hyderabad, giving a boost to the AP government’s efforts.
On Sunday, Tata Group chairman, Ratan Tata, announced that his group will focus all its future defence and aerospace ventures in and around Hyderabad. In addition to the 295-acre SEZ, where it is a major investor, the group’s JV with Israeli Aircraft Industries, (IAI), has also asked for 75 acres more in Ibrahimpatnam, near Hyderabad , to make critical defence technologies.
“We have a locational advantage. We feel we have the appropriate infrastructure to provide the defence industry with their requirements,” Sam Bobb, principal secretary in the Andhra Pradesh chief minister’s office, told the Economic Times.
The $7.1-billion Mahindra & Mahindra , Tata’s rival in aerospace, has also asked for 50 acres in Ibrahimpatnam for defence projects. Mahindra is also promoting a 250-acre aerospace SEZ outside Bangalore, but the project has not taken off, due to land acquisition issues, which could delay any progress for at least another 12-18 months. The Tata SEZ, on the other hand, already has tenants that include diversified manufacturer Punj Lloyd and government-controlled undertaking Midhani.
“The city’s infrastructure has to be taken care of, which includes upgrading roads, providing smooth access to sea-ports and airports. This where Hyderabad probably scores over Bangalore, which has massive transportation issues. The government needs to respond to industry’s needs much faster,” S Ramaseshan, head, Mahindra Satyam, Aerospace Engineering Solutions said.
FLIGHT PATH
Hyderabad scores due to:
Better implementation of SEZ policy
State government creating infrastructure specifically targeted at the aerospace and defence-focused companies
Land costs are generally seen to be lower than those in Karanataka, a major incentive for potential investors looking to set up manufacturing, maintenance, repair and overhaul facilities in the aviation sector
Bangalore loses out due to:
Infrastructure issues have been a serious cause for concern for existing as well as potential investors. Transportation bottleneck a big dampener
Karnataka’s poor record in power generation growth is not expected to improve anytime soon
Karnataka’s special economic zone policy yet to be implemented to its fullest degree. The proposed aerospace SEZ yet to take off
Andhra goes all out to woo investors
While Bangalore still ranks ahead when it comes to attracting attention from the global aerospace and defence vendors, the gap between the two cities is closing faster than anticipated , as the Andhra Pradesh government goes all out to attract investors, in what it clearly believes is a sunrise sector.
“We have the land, and are developing the necessary infrastructure exclusively for these sectors , which includes providing adequate power, offering a 50% value-added tax reimbursement and ensuring fully-developed infrastructure, along with complete connectivity,” pointed out Mr Bobb. Bangalore-based infrastructure giant GMR, which also set up a 250-acre SEZ at Shamshabad in 2008, acknowledges the sustained interest in the city as an aerospace hub.
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