From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Nov 15: Karnataka has a high potential for aerospace industries due to its strength and advantages like relatively low cost aerospace manufacturing, presence of defence public sector undertakings, research and development agencies, expertise in aerospace with a number of small and medium enterprises, said Large and Medium Industries Minister R V Deshpande in Bengaluru on Wednesday.

Inaugurating the Maini Precision Product’s Aerospace Facility at Bommasandra Industrial Estate, he said the State is positioned as an aerospace destination due to the presence of numerous aerospace companies and Public Sector Units engaged in manufacturing, design and development and Maintenance, Repair and Overhaul (MRO) activities.

Deshpande said the big presence of public sector enterprises and many international private players like European Aeronautic Defence and Space Company, BOEING, AIRBUS, HCL, HONEYWELL and UTC Aerospace have invested in aerospace sector in the State.

Karnataka has emerged as the aerospace capital of India, he said and pointed out that the State is a pioneer in the contribution of Hi-Tech Ecosystem to the Indian Aerospace industry, attracting 65% of the aerospace investments in the country and produces quarter of India's aircraft and spacecraft.

The Minister congratulated and expressed deep appreciation of Maini Precision Product’s important contribution in enhancing the growth of the aerospace industry in the State as a key manufacturer for precision components and sub-assemblies used in aero structures, aero engines and aircraft systems.

Maini Precision Product’s advanced manufacturing processes coupled with their technological and engineering expertise have enabled them to provide high precision components to the advanced technological markets. They have been successful in reaching out to OEMs (Original Equipment Manufacturers) and contribute extensively towards the Make in India initiative, he said.

Emphasis of New Industrial Policy 

The State Government’s New Industrial Policy gives emphasis on providing good infrastructure support for promotion of industries. In order to provide world class industrial infrastructure support, the policy proposes to encourage private investment in establishing industrial area/estate either individually or through PPP mode.

The Policy aims at holistic development of the State with equitable distribution of industries all over Karnataka, he said explaining that the aerospace sector has been identified as a focus sector.

“This showcases the State’s commitment to retain the leading position and emerge as a global hub in the sector. Karnataka is the first State with a dedicated aerospace policy and has identified an investment potential of US$ 12.5 billion in this sector during the period 2013–23 and plans to develop aerospace clusters in different regions of the State,’’ he said.

Under the Aerospace Policy, special packages of incentives and concessions are offered to aerospace industries in Zone 4 also which include investment promotion subsidy to MSME’s, stamp duty, concessional registration charges, reimbursement of land conversion fee, exemption from entry tax, power cost reimbursement, interest subsidy, etc. 

The minister said Karnataka accounts for 70 % of the supplier base of the sector making it the undisputed aerospace hub of India. It also contributes 65 % to aerospace related exports from the country. Of all aircraft and helicopters available with the country’s Defence Services, 67 % originates from Karnataka.

The State is exporting aerospace products to US, UK, Germany, Russia Mauritius, Malaysia, Nepal, Oman and Ecuador. Karnataka is home to first and Top R&D Centers in Aerospace & Defence such as Indian Space Research Organization (ISRO) and the Defence Research and Development Organization (DRDO).

With India’s first aerospace SEZ of 300 acres which is operational at Belgaum, Karnataka is poised to grow into a global centre with access to a quality ecosystem. AEQUS is established as India’s first precision engineering SEZ at Belagavi, Karnataka. 

The State has been the first to develop a Hi-Tech, Defence and Aerospace Park adjoining the Bengaluru International Airport, in a total extent of 2980 acres for Aerospace Component Industries, IT Industries, and Defence Industries, he said.

A world-class Aerospace park near Devanahalli coming up where aerospace and hardware industries will come along with MRO facilities and component making. This is in addition to Aerospace Park at Belagavi, he said.

Defence Manufacturing Cluster at Mangaluru

MRO centres at BIAL and Mysore, and a defence manufacturing cluster at Mangaluru are also being planned, Deshapnde said adding, Bengaluru Aerospace Park and Bengaluru Aerospace SEZ contains facilities like manufacturing, MRO with direct access to BIAL runway, testing center, hardware/ embedded technology center, technology innovation center including a certification/calibration center, a common finishing facility and housing. 

The State Government allotted 610 acre of Government land at Gubbi in Tumakuru District to HAL to establish the Light Utility Helicopter facility, which will act as an anchor to attract a cluster of aerospace SMEs to Tumakuru. 

Karnataka has recently developed first high-tech Aeronautical Test Range (ATR) at Challakere in Chitradurga district, which has two hangers to house UAVs (Unmanned-Aircraft Vehicle System), Radar Centre, Fibre-Optic Network, and a Separate Residential Complex. 

The State Government is setting up the Centre for Excellence in Aerospace in partnership with Dassault Systems. This industry-driven aerospace park will be located at Devanahalli and will act as a catalyst of growth by making world class skilled professionals available for the aerospace and defence sector.

This Centre of Excellence is an important step towards making Karnataka an international hub for the aerospace and defence sector. This centre will help in attracting foreign and domestic investments to the state since there will be ready availability of highly skilled professionals trained on the latest technology used in the aerospace and defence industry.

The Aerospace Common Finishing Facility envisioned in the policy is being set up near Devanahalli with a project cost of Rs 90 crore. Aerospace and aviation sectoral skill council has been established with Chairman, Hindustan Aeronautics Ltd as its Chairman along with 18 other sector specialists as Governing Council members with a mandate to define 90 job roles, certify 5,20,000 trainees and 6,000 qualified instructors over the next 10 years, he said.