jha
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Aerospace and Defence SEZs in India ?
7 Mar 2010 8ak: India has the potential to becoming a global defence manufacturing hub. The key reasons for this are 50%-85% of our defence equipment is obsolete and 'frugal engineering' as suggested by Mahindra Defence CEO, Brig Hai (both in same 8ak article here); the offset clause in defence manufacturing applicable to purchases over 300 cr (US$75m) and expertise in software which comprises 30 to 50% of new system development.
The challenges are plenty- competition from other countries like Brazil, China etc, flawed/non-existent government policies, non-availability of finance and lastly, shortage of industrial land. The issue of shortage of suitable land was seen in the Tata Groups' withdrawal from Bengal over the inability of the W. Bengal government to provide it with 1,000 acres of land (see Wikipedia).
Many real estate groups are now addressing the issues above by setting up defence manufacturing hubs. Last year Quest Aerospace opened a 300 acre aerospace (and nuclear) park in Belgaum (see the 8ak article). Last month, Sri Kubera Infracon announced the launch of Viswakarma Technopolis in Hyderabad and 8ak interviewed Murali Datla on why they were expecting success given that most SEZs in India have failed and were mostly real estate plays rather than industrial parks. (While Viswakarma sponsored the 8ak stand and camera crew we maintain a strict policy of editorial independence from advertiser influence. This is reflected in the fact that we have very few advertisers).
CII recently pitched for a defence park in Tamil Nadu, home to most major auto manufacturers. GMR is promoting its park adjacent to the Hyderabad airport and the Indu Group is promoting the Lepakshi Knowledge Hub on the Andhra/Karnataka border. Others are proposed in West Bengal and Maharashtra. Given the overlap of defence with non-defence industries (ie. auto and medical equipment manufacturers need minor changes to use their products in defence equipment) manufacturers looking for land will be the biggest winners due to competition from the SEZs to attract enough companies to create a sustainable eco-system.
8ak - Indian Defence News
7 Mar 2010 8ak: India has the potential to becoming a global defence manufacturing hub. The key reasons for this are 50%-85% of our defence equipment is obsolete and 'frugal engineering' as suggested by Mahindra Defence CEO, Brig Hai (both in same 8ak article here); the offset clause in defence manufacturing applicable to purchases over 300 cr (US$75m) and expertise in software which comprises 30 to 50% of new system development.
The challenges are plenty- competition from other countries like Brazil, China etc, flawed/non-existent government policies, non-availability of finance and lastly, shortage of industrial land. The issue of shortage of suitable land was seen in the Tata Groups' withdrawal from Bengal over the inability of the W. Bengal government to provide it with 1,000 acres of land (see Wikipedia).
Many real estate groups are now addressing the issues above by setting up defence manufacturing hubs. Last year Quest Aerospace opened a 300 acre aerospace (and nuclear) park in Belgaum (see the 8ak article). Last month, Sri Kubera Infracon announced the launch of Viswakarma Technopolis in Hyderabad and 8ak interviewed Murali Datla on why they were expecting success given that most SEZs in India have failed and were mostly real estate plays rather than industrial parks. (While Viswakarma sponsored the 8ak stand and camera crew we maintain a strict policy of editorial independence from advertiser influence. This is reflected in the fact that we have very few advertisers).
CII recently pitched for a defence park in Tamil Nadu, home to most major auto manufacturers. GMR is promoting its park adjacent to the Hyderabad airport and the Indu Group is promoting the Lepakshi Knowledge Hub on the Andhra/Karnataka border. Others are proposed in West Bengal and Maharashtra. Given the overlap of defence with non-defence industries (ie. auto and medical equipment manufacturers need minor changes to use their products in defence equipment) manufacturers looking for land will be the biggest winners due to competition from the SEZs to attract enough companies to create a sustainable eco-system.
8ak - Indian Defence News