Karnataka to Set Up New Aerospace and Defence SEZ
India Defence Online, New Delhi – International and national defence majors are eagerly anticipating the government approval for the development of the aerospace special economic zone (
SEZ) near the Bangalore international airport in the southern Indian state of Karnataka.
The aerospace SEZ in Karnataka will enable various defence players to set shop in India and tap the defence aerospace business here as well as cater to the export market. Out of the 1,000 acres of land acquired by the Karnataka Industrial Area Development Board (KIADB), around half of the area will be given to firms for the creation of factories. The SEZ will also capitalise from the growing defence offsets market in India besides creating a dedicated Maintenance Repair and overhaul centre (MRO) in the aerospace SEZ.
According to sources, Amada of Japan, Dynamatics Technologies,
Bharat Earth Movers Limited (BEML) and
Hindustan Aeronautics Limited (HAL) have acquired land at the Aerospace SEZ in Karnataka. State-owned BEML has invested $70 million in its set-up and products to be manufactured at this plant include aircraft components, assemblies and MRO activities related to aerospace applications. BEML aims at cashing in from the defence offsets policy and is expecting at a business of around $22 million during the two-year period ending March 2011 from the defence offsets policy.
The company has also set up an Aerospace Manufacturing Division (AMD) which will help in penetrating the aerospace component industry. BEML has also received certification from the Centre for Military Airworthiness & Certification (CEMILAC) for aero design. This will enable BEML to engage in tie-ups for aero defence offsets.
Likewise, other state-owned firm HAL, with an investment of $465 million over 100 acres of land, plans to make engines and engine components, welded structural assemblies as well as an MRO unit for aircraft and choppers.
Private Majors like Dynamatic Technologies of India are planning to invest about Rs.465 crore to set up an aerospace components unit in SEZ while others like Amada of Japan will be setting up a technology centre.
In mid 2010, the Karnataka government had signed MoU's with a host of small companies to set up facilities at the aerospace SEZ for a combined investment of $658 million. These firms are AIMIL Limited, Ayyappa CNC Private Limited, Centum Electronics Limited, Dynatech Tools and Devices, Priyaraj Electronics Limited, Sunshine Aerospace Private Limited, Universal Electro Magnetic Cores and Yamini Automation Private Limited.
According to officials, many more small and big firms will be eager to set up facilities once the clearance for the aerospace SEZ in Karnataka gets through, making it the second of its kind in the state. Even as the approval from the Board of Approval is yet to come, the Karnataka government has already attracted aviation and defence majors to set up shop there.
http://indiadefenceonline.com/2274/karnataka-to-set-up-new-aerospace-and-defence-sez/