The Chennai Aerospace Park has all necessary clearances in place and will commence land development from March 2017. The park has attracted an investment of close to ₹1,300 crore from 14 companies, with 19 more expressing interest.

The Tamil Nadu Industrial Development Corporation Limited (TIDCO) will develop the park on 260 acres at Sriperumbudur. The size of the park can be increased to 600 acres. The objective of the project is to create an ecosystem to promote aviation industry in the State.

In addition to the park, an aerospace Maintenance Repair and Operations (MRO) complex will come up near the airport, for which TIDCO will be the joint venture partner.

TIDCO will also be the partner for the proposed expansion of Taneja Aerospace Park in Hosur.

The organisation, in association with the Mission Aerospace Foundation of India, will take up a business-jet manufacturing project in Salem. There are plans to develop an aerospace park in Coimbatore, as well. TIDCO is in talks with universities in Tamil Nadu for skill development in the sector.

Addressing a seminar on ‘Tamil Nadu Aerospace and Defence Vision 2023’, B Elangovan, Senior General Manager, TIDCO, and Managing Director, TIDEL Park, said that in addition to the park in Chennai, TIDCO is trying to develop aerospace parks in multiple locations, and integrate them. It will further help in the development of aerospace industry in Tamil Nadu, he said.

Vikram Kapur, Tamil Nadu Industries Secretary, said the State being a leader in the manufacturing industry, its entry into the aerospace sector is only a natural extension.

Globally, the aerospace industry is valued at $1.3 trillion. The Indian aerospace sector accounts for about $40 billion, and this share is gradually increasing, TIDCO said. The industry is growing at the rate of 12 per cent in the country, compared with the global average of 3.5 per cent. Additionally, the global aviation sector is shifting its focus from the US and Europe to Asian countries such as India and China. This presents a huge opportunity for the sector in India.

Global opportunities aside, domestic demand is also on the rise. Currently, there are around 500 aircraft and 200 helicopters in operation in India. It is expected to increase to 1,000 and 800, respectively, in the next 10 years, TIDCO said. There are opportunities in the MRO business as well, which, so far, has not been the focus of the Indian aerospace industry. The MRO business in India is valued at ₹5,000 crore, but only 10 per cent of it is being tapped, TIDCO added. The business is estimated to reach ₹14,000 crore in the next three years and ₹20,000 crore in the next 10 years.

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