Centre sidelines Telangana despite strong defence, aerospace ecosystem

Despite its acclaimed aerospace ecosystem and repeated appeals for a Hyderabad–Bengaluru defence corridor, Telangana was excluded from the Centre’s industrial corridor plan. The State’s proposals were ignored without explanation, echoing similar neglect in other national projects

Hyderabad: Hyderabad has long been home to a robust defence and aerospace ecosystem. In addition to public sector units, the State has attracted substantial private sector investment in the defence and aerospace sectors, particularly between 2014 and 2023.

Telangana was adjudged the Best State for Aerospace thrice in 2018, 2020 and 2022. Despite this, the BJP-led Union government ignored the State while approving Defence Industrial Corridors for Uttar Pradesh and Tamil Nadu.

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When the Centre first announced the Defence Industrial Production Corridor concept, the Telangana government, particularly then Industries Minister KT Rama Rao, repeatedly appealed for a Hyderabad–Bengaluru corridor, citing the well-established ecosystem in the region.

Questions were raised over the Centre’s rationale in choosing Uttar Pradesh. Under the initiative, the BJP-led Union government launched the Uttar Pradesh Defence Industrial Corridor (UPDIC), identifying six nodes — Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow — as part of the plan.

A similar corridor was also approved in Tamil Nadu. Even as Telangana continued to appeal for inclusion, in 2023, the Union government declared that there were no proposals to establish any new defence industrial corridors.

Last year, the Ministry of Defence signed a Memorandum of Understanding to establish three testing facilities in UPDIC under the Defence Testing Infrastructure Scheme (DTIS). Of these, one was sanctioned for Lucknow and two for Kanpur. Similarly, four testing facilities were approved in Tamil Nadu.

While the Telangana government extended its compliments to Uttar Pradesh and Tamil Nadu for being chosen, it urged the Centre to support progressive States and refrain from making politically motivated decisions.

The State’s appeals were based on solid grounds. Hyderabad and its suburbs house over 1,000 MSMEs engaged in precision engineering. In addition, the region is home to several premier defence and aerospace research institutions, including DRDO, DRDL, RCI, BDL, MDN, DMRL, the Ordnance Factory among others.

Moreover, Hyderabad is host to four dedicated aerospace parks – Adibatla Aerospace SEZ, Nadergul Aerospace SEZ, GMR Aerospace SEZ and Adani Aerospace SEZ – further strengthening its claim.

The Telangana government’s demand for a Hyderabad–Bengaluru Defence Industrial Corridor was also aimed at driving development in backward districts such as Mahabubnagar, Rangareddy and Wanaparthy, while creating employment opportunities for local youth.

Even after the Centre’s declaration ruling out the creation of new corridors, the Telangana government once again appealed to Prime Minister Narendra Modi and the Finance Ministry, requesting a reconsideration of the decision.

However, as with Telangana’s earlier demands for a bulk drug park or national status for key irrigation projects, the Centre once again looked the other way, without offering any explanation.