Hyderabad to be Tata’s defence, aerospace hub

Discussion in 'Strategic Forces' started by ajtr, Nov 8, 2010.

  1. ajtr

    ajtr Veteran Member Veteran Member

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    Hyderabad to be Tata’s defence, aerospace hub

    Hyderabad: The Tata group has decided to make Hyderabad a hub for its defence and aerospace investments, chairman Ratan Tata said.

    Tata was in Hyderabad on Sunday to unveil the first helicopter cabin made in India by Tata Advanced Systems Ltd for US-based Sikorsky Aircraft Corp., the world’s biggest maker of helicopters. The cabin will be used in Sikorsky’s S-92 model helicopter.

    Sikorsky is part of United Technologies Corp., a group that also produces aircraft engines, elevators and fire and security equipment.

    Tata Advanced Systems, a unit of Tata Sons Ltd, invested nearly Rs. 1,000 crore to set up the helicopter cabin manufacturing facility at an aerospace and precision engineering special economic zone at Adibatla on the outskirts of Hyderabad.

    Defence and strategic sectors are likely to emerge as larger new areas for the Tata group as the private sector enters these sectors, Tata said. “The Tata group has decided that all its aerospace and defence—the new area of Tata group—investments will be centred at Hyderabad in Andhra Pradesh,” he added. He did not elaborate on the planned investments.

    Tata had earlier entered into a joint venture agreement with the Italian defence and aerospace manufacturer AgustaWestland to assemble AW119 helicopters at Hyderabad.

    Nova Integrated Systems Ltd, a venture of Israel Aerospace Industries Ltd (IAI), a developer of military and commercial aerospace technology, and Tata Advanced Systems had approached Andhra Pradesh government in June, showing interest in setting up a defence equipment manufacturing facility.

    The venture plans to develop, manufacture and support a wide range of defence and aerospace products, including missiles, unmanned aerial vehicles, electronic warfare and homeland security systems. IAI had announced plans to invest $50 million in Nova to own 26% of the venture, while Tatas would own 74%.

    Sam Bob, principal secretary in Andhra Pradesh chief minister’s office, said the group was keen on Hyderabad for defence and aerospace equipment activities since the city provides an ecosystem for the sector. Several defence equipment and component manufacturers are active around the city.
     
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  3. plugwater

    plugwater Elite Member Elite Member

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    Good news. Bangalore need some competition!!
     
  4. ganesh177

    ganesh177 Regular Member

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    .............. edit ............
     
    Last edited: Nov 9, 2010
  5. Vladimir79

    Vladimir79 Defence Professionals Defence Professionals

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    Pretty sure Eurocopter is the largest maker of helicopters.
     
  6. ajtr

    ajtr Veteran Member Veteran Member

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    Tata, M&M help Hyderabad inch closer to Bangalore



    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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