Bharat Electronics Ltd (BEL) will invest ₹500 crore for joint research and development (R&D) and production of defence systems with private small and medium enterprises (SMEs).

 “To fulfil this collaborative R&D initiative, we are involving them in our Defence Systems Integration Complex coming up at Anantapur district’s Palasamudram (about 125 km from Bengaluru) to be built on 900 acres on a budget of ₹500 crore,” SK Sharma, Chairman and Managing Director (CMD) told Business Line .

 “The Defence Systems Integration Complex is planned to strengthen our infrastructure in areas such as surface-to-air missile (SAM) programmes, night vision technologies, and elements of multi-function radars,” he added.

Military complex Speaking after laying the foundation stone for BEL’s Defence Systems Integration Complex, Defence Minister Manohar Parikar said, “IACC board of the union government has cleared ₹7,290 crore, military equipment order that included missiles and its integration.”

“There are more to come. I expect you (defence industry) just not stop at manufacturing and integrating missiles, but let us start the concept of industrial military zones,” he said.

He added that the government was considering the concept of special zones for military production and creation of separate ecosystems.

Andhra Pradesh Chief Minister Chandrababu Naidu said 3,500 acres has been allotted for the DRDO land in Kurnool district.

Palasamudram complex The Palasamudram complex will enable BEL to expand its missile system business and will carry out manufacturing and integration of its ongoing and upcoming projects.

 BEL is currently manufacturing different variants of Akash missile systems for the Indian Air Force and the Indian Army.  Akash is a supersonic, short range surface to air missile system designed and developed by DRDO.

 Sharma said, “The Palasamudram facility will cater to the requirements of our testing and integration of the missile systems. At present, it is carried out at missile manufacturing and integration at Bangalore unit.”

Diversification  As part of diversification and business growth, BEL is considering a major expansion into new generation SAM systems, high-end image intensifier tubes and thermal imaging detectors for nigh vision devices, inertial navigation systems, electronic ammunition fuses, air traffic management radars, intelligent traffic management systems and solar power plants.

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