100 acre defence cluster proposed at Pune

Eyeing the estimated localisation contracts worth Rs 40,000 cr from global defence equipments manufacturers over next five years, Pune-based DEMA Manufacturers' Association has proposed a 100-acre "defence cluster" near Pune on public-private partnership basis.

The proposal submitted to the ministry of defence looks at setting up 50-70 manufacturing units along with a research and development centre, a testing facility and a training centre with an initial investment of approximately Rs 40 cr.

DEMA, a group of small and mid-sized companies involved in defence equipments manufacturing, has requested the ministry of defence to allocate the necessary 100 acre land for this project around Pune city to optimise the overall project cost.

Speaking to Business Standard, DEMA president DS Kamlapurkar said, "The proposed "defence cluster", once operational, will help small and medium enterprises to bag off-set contracts from global defence equipments manufacturers.

As per the newly formed defence product policy, all major overseas contracts worth Rs 300 cr and more must have a minimum of 30% localisation.

This could be in the form of technology transfer or a joint venture or complete development.

The same opens a great opportunity for Indian defence component makers and the "defence clsuter" will help them grab this opportunity."

DEMA wants to persue this project on similar lines to country's first "auto cluster" set up in Pune through public-private partnership.

"Defence ministry owns huge land in and around Pune city out of which, we have asked for only 100 acres.

If this land comes as government contribution to the project, DEMA will atke care of the remaining investment," Kamlapurkar added.

DEMA believes that Pune city is the perfect location for the proposed "defence cluster" as the city has a strong engineering and information technology base along with a large number of defence establishments such as Defence Research and Development Organisation (DRDO), ammunition factories and Research and Development Egnineers (R&D), Dighi.

"The 'defence cluster' is an attemp to create a single window system, where multi-nationals can look for localisation partners for various projects.

This will lead to faster development of new equipments and will also expose Indian players to new technology," said Vishwas Udpikar, one of the 38 DEMA members.

The industry estimates suggest that Indian players would receive localisation contracts worth Rs 40,000 cr over next 5 years.

DEMA wants the ministry of defence to ensure that this demand is met by Indian companies and for which, "defence cluster" could be a fast-track solution.

"We have submitted this proposal to the ministry recently. A positive response is awaited within few months," Kamlapurkar stated.