Taking flight in the Karnataka, Aerospace and Defense sector open for investor bombing

950 acres Earmarked for an aerospace SEZ near adjacent to the Kempegowda International Airport at Devanahalli

• Aerospace Technology Innovation Centre Proposed in Aerospace park
• Aerospace common finishing facility with Rs 99 crores investment will come up in the aerospace park for the benefit of SMEs
• Projects in Pipeline to set facility in Aerospace Park

Boeing Company - Global Engineering Center

Saffran

Rolls Royce

Air Bus

• Greenfield airports at Shimoga, Bijapur, Hassan and Gulbarga
• Total Number of projects approved in the Aerospace/Defence sector: 72
• Investments over Rs 14000 crores
• Employment Generated: 30000 persons
• Defence & Aerospace Cluster is planned in NIMZ, Tumkuru
• HAL Helicopters project in Tumkur: Rs 5500 Crores ( approved)
• Aequs Aerispace SEZ is in operation at Belgaum in 300 acres. Proposed for expansion in 500acres adjacent to the existing SEZ.

The birthplace of India’s first indigenous fighter jet, Light Combat Aircraft (LCA), is testimonial of Karnataka’s confidence of nobody else being above the State in the field of defense and aerospace.An undisputed leader of the country in the aerospace and defense sector, Karnataka produces more than a quarter of the Country’s requirements in the aircraft and spacecraft sector.

With a strong base of lower tier suppliers, numbering over 2,000 Small and Medium Enterprises, that execute the niche sub-contracting work for the defense Public Sector Units (PSU), there is a strong ecosystem in place for investors in these sectors.In fact, Karnataka accounts for more than 65 per cent aerospace related investments in India. The increase in the national defense budget expenditure coupled with increasing demand of the civil aviation industry, globally, Karnataka is in unique position to leverage potential growth in the sector.

Striving towards this, India’s first aerospace SEZ is operational in Belagavi. This apart, the Government has earmarked 950 acres of land for another SEZ near Bengaluru, which is adjacent to the Kempegowda International Airport at Devanahalli.The Bengaluru SEZ will see facilities like manufacturing are and SEZ, 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.

With the added advantage of a large presence of top IT and ITES and electronic hardware companies in the State, many of them can be utilized for their services in an integrated supply chain for the sector.The State is also the first in rolling out a dedicated Aerospace policy in the country, to boost the sector by providing specific incentive programs and tailor made initiatives for the aerospace companies.The incentive packages and concessions include anchor unit subsidy, exemption from stamp duty, concessional registration charges, exemption from electricity duty (duration depending on the size of the project), entry tax exemption, etc.

The aerospace industry will also see special package of incentives & concessions for large, mega, ultra-mega and super-mega projects on a case-to-case basis. This apart, the development of Greenfield airports at Shimoga, Bijapur, Hassan and Gulbarga through the PPP model also provides opportunities to companies to secure their investment in this field.Perhaps, this may be the last and final boarding call for most firms to board the Aerospace sector flight, which is surely ready to take off in Karnataka towards global greatness and recognition.

1. Presence of top companies in Karnataka
Hindustan Aeronautics Limited
GE Aerospace
UTC Aerospace
Boeing R&D Centre
Airbus R&D Centre
Rolls Royce Joint Venture with HAL
Quest Technologies
Dynamatic Technologies
More than 2000 SMEs

2. Major projects approved in the Aerospace Park/SEZ, near KIAL, Devanahalli, bangalore rural District

Hindustan Aeronautics Limited
Wipro Aerospace - Functioning
Thysenkrupp Aerospace - Functioning
Starragheckert - Functioning
BEML - Under Implementation
Dynamatic Technologies - Under Implementation
TATA Power Company - Building Under Construction
Centum Electronics - Building Under Construction
EFD Induction- Building Under Construction
Dynatech Tools - Building Under Construction
Tyco Electronics - Building Under Construction
Astra Microwave Products - Building Under Construction
Jupiter Aviation - Building Under Construction