Global Aerospace majors evince interest in SEZ

Honeywell, Rolls Royce, Dassault Aviation and Thyssen Krupp are among the 50 or so domestic and overseas companies that have shown interest in setting up manufacturing units in the aerospace SEZ near the Bangalore international airport. The top officials from these companies held talks with the state government during the Aero India 2011 and visited the upcoming Aerospace SEZ near the Bangalore international airport, a senior government official said.

“The proposals have the potential to generate an investment to the tune of Rs 5,000 crore in the next two years in the aerospace sector. Already, nine Indian firms, including IT majors Wipro and Mahindra have signed memoranda of understanding with the government for an investment of around Rs 430 crore at the Aerospace SEZ,” V P Baligar, principal secretary, department of commerce and industries, government of Karnataka told Business Standard.

He said, aerospace division of Thyssen Krupp from Germany, Axis Aerospace and Technologies, and Mahindra Group have already taken approvals from the state government. Thyssen Krupp is investing Rs 50 crore in the first phase and is taking up around 10 acres for their components’ manufacturing unit, while Axis Aerospace and Technologies is setting up an aerospace cluster comprising an MRO (maintenance, repair and overhaul) facility spread over 75 acres adjacent to the international airport.

Baligar said, during the just-concluded Aero India 2011, a 10-member delegation from Belgium, 12-member delegation from France and a 25-member delegation from the US held discussions with the state government. These companies intend to set up production facilities for aerospace parts, actuators, components, aero structure and assemblies.

“The companies have shown interest in setting up their components manufacturing units in Bangalore to cash in on the opportunities coming up due to the offset policy. They want to firm up their plans once the government of India signs the medium multi-role combat aircraft (MMRCA) deal worth Rs 45,500 crore,” he said.

Mahindra Aerospace Ltd has committed to invest Rs 284 crore to set up a manufacturing unit for aerospace components and aero structures and assemblies at Narasapura industrial area in Kolar district, about 100 km from Bangalore. Rolls Royce, which has a tie up with Hindustan Aeronautics Limited has evinced interest in setting up the components unit in Bangalore.

Wipro plans to set up an aerospace special economic zone (SEZ) with Rs 53 crore investment in the proposed Aerospace Park at Devanahalli, about 40 km from the city. The proposals have potential to generate about 2,000 direct skilled jobs and about 4,000 indirect jobs in Bangalore urban and rural districts.