Telangana to focus on manufacturing

State creating policy framework and land to attract more investors from across the globe

By Author  |  Published: 23rd Jun 2018  12:10 amUpdated: 22nd Jun 2018  8:28 pm
Telangana business
Telangana has created a large pool of trained manpower in manufacturing and engineering design.

Hyderabad: Hyderabad has emerged as a defence and aerospace hub. The city has created a vibrant space for the development of aerostructures, design & engineering and material for the aerospace and the defence sector. The State has created clusters for composites, aerostructures, electronics and larger units to come in. Efforts are being made by the State government to attract foreign companies who can come here and collaborate with the local companies.

P A Praveen, director- Defence & Aerospace, Government of Telangana, told Telangana Today, “Telangana government is keen to bring an all-round growth in the sector focusing on innovation, manufacturing and skilling. As part of its future vision, the State wants to create a defence incubator in Hyderabad under the Innovations for Defence Excellence (IDEX) scheme. The State has already requested the Union Defence Minister to consider the proposal.

We are hopeful that the proposal will be considered soon. We have started our talks with prospective startups, which can be part of the incubator. Startup momentum is picking up here. Recently T-Hub and Boeing have rolled out the HorizonX India Innovation accelerator programme for which 80 startup applications had been received so far. ISB is also creating a centre of excellence for aviation (that will focus on air traffic congestion) for which the State government is going to be a funding partner.”

He said, “Telangana has identified aerospace and defence as the thrust sectors for its growth and its industrial policy allows faster approvals for projects. We have prepared a draft aerospace and defence policy, which will be finalised after taking inputs from the soon to be released Defence Procurement Policy of the Centre. The Ministry of Civil Aviation has recently awarded Telangana as the best State for its most progressive policy for the aerospace sector.”

Telangana has created a large pool of trained manpower in military grade, manufacturing and engineering design, which is attracting a lot of industry including the foreign original equipment manufacturer (OEMs) to Hyderabad. Telangana Academy for Skill and Knowledge (TASK) has just completed a training programme for French aerospace and defence company Safran.
Telangana has signed three global partnerships for skilling to impart both basic and advanced certification based skilling. An aerospace university is also on the anvil with industry-academia collaboration, and backed by the State government.

Ecosystem

In the last few years, Telangana has attracted many OEMs such as Lockheed Martin, Boeing, Sikorsky, GE, Safran, Honeywell and Pratt & Whitney. To support their growth, several domestic companies have established their presence that include- Tata Advanced Systems, Kalyani Bharat Forge, VEM Technologies, Adanis, SEC, Zen and Ananth Technologies. In the designing and engineering space, the city has Cyient, TCS, Wipro and Infosys employing thousands of engineers for aerospace and defence sector. Hyderabad also gets 30 per cent of the outsourced work of ISRO on the space front, at present.

Among the new investors, Adanis have begun their works on a composite manufacturing unit near Shamshabad. The company has taken 20 acres of land.
In the 165-acre TSIIC Composite Park, there are around 65 local manufacturers have taken space. The government is making place for new composite players to come in. There are three dedicated aerospace parks.

He informed, “We have recently received approval for a 900-acre electronics manufacturing cluster, where we expect a lot of defence electronics companies to come and establish their units. We are seeing interest from both foreign and domestic companies. In the National Investment and Manufacturing Zone (NIMZ) at Medak, where 16,000-acre industrial will be developed, about 1,000 acres could be used for the defence sector. Land acquisition is happening for NIMZ at present.”

The city has 10 defence public sector units (PSUs), which have nurtured the private sector companies enabling them to grow faster. Today there are 25 large size private companies and over 1,000 MSMEs in the defence and aerospace supply chain.

“The strategic location of Hyderabad, with no possibility of cyclones and natural calamities besides being a non-seismic zone, is also away from any external aggression, making it an ideal place for defence establishments to operate. It is also accessible to many ports and airports and this connectivity is one of the key features that attract investors here,” Praveen added.