The Hindu Business Line : Aerospace Industries Association raises pitch for park near Hyderabad

Hyderabad, Jan. 19 The recent decision by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to allot 250 acres is expected to give a momentum to the Aerospace Park project.

In the past few years, the defence labs, private and public sector companies and the Aeronautical Society of India, Hyderabad chapter have been making consistent attempts for the project to turn the city into an aviation hub.

The Aerospace Industries Association (ASIA) has come up with a concrete proposal, which they have submitted to the Andhra Pradesh Government, to establish an Aerospace Park to exploit the growing market opportunities.

The ASIA is being anchored by MTAR Technologies, one of the leading private sector companies focused on indigenous development of precision equipment for the strategic sector. More than 60 firms in Hyderabad including L&T, Tatas, Godrej, Walchandnagar Industries handle large projects in the strategic sectors.

The Managing Director of APIIC, Mr B.P. Acharya, said the Corporation has identified 250 acres for the proposed park near Nadargul, on the outskirts of the city. It is in discussion with the ASIA to develop the Park.

Holding company

The Chairman of MTAR, Mr P. Ravindra Reddy said the broad idea behind the Aerospace Park was to bring under a holding company a cluster of small and medium enterprises.

The Park, in turn will provide a host of common facilities—testing, training, marketing, procurement, human resources, standards and exhibition, guest and conference facilities, which the individual companies can utilise, he told Business Line. All the firms in the Park would have a share in the holding company.

Product development

The strengths and capabilities of these firms should enable the holding company to take up large product development, Mr Reddy said citing the proposal document for ASIA.

The self-sufficient Aerospace Park, will give strength to the holding company to bid for large sized projects in defence, nuclear and aerospace production.

The Union Government’s Offset Policy, which allows the advantage to domestic industry to contribute 30 per cent of the project size offers huge opportunities for the industries in the Park.

The potential business turnover from such a venture could be around Rs 15,000 crore by 2010, he said.

Common facilities

All the independent companies would have the advantage of leveraging the common facilities to compete and execute projects in their areas of expertise.

The Park is expected to generate revenues to the State via taxes, increase employment opportunities for skilled manpower.

Defence sector

In view of the opening up of the defence sector for FDI up to 26 per cent and the move to allow global collaboration as well as take up multi-million dollar projects, the scope for industries is enormous.

Already over 60 SMEs are working with the defence labs like the DRDL, DMRL, RCI and in the missile development projects.

In the aerospace sector, Hyderabad has all the ingredients to emerge as a hub.

Hence, the right efforts to synergise the existing infrastructure and capabilities through a consortium and the Aerospace Park initiatives would prove beneficial said Dr V.K. Saraswat, Chief Controller R&D (missiles and strategic systems) of DRDO and President of Aeronautical Society of India, Hyderabad.

More Stories on : Infrastructure | Airlines | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Aerospace Industries Association raises pitch for park near Hyderabad

Private airlines hope to operate on Abu Dhabi, Dubai routes

Karnataka truckers to go on strike

Resolve row over transport sops in North-East: PMO