AP Keen On Emerging As Preferred Hub For Defence, Aerospace Sector

Vijayawada: With an aim to achieve a 15 per cent annual growth and become a $2.4 trillion economy, Andhra Pradesh is keen on initiating several policy reforms to become a most preferred destination for investments in defence and aerospace sector.

As three industrial corridors will criss-cross into the State with funding from the multilateral agencies, the TDP-led NDA Government has approached the Government of India for funding on Sagarmala and other projects to improve connectivity thereby to reduce logistics cost with its 974-km long coastline, the second after Gujarat.

Chief Minister N Chandrababu Naidu held a series of meetings with various ministries in New Delhi on the proposal to develop a Hi-Tech Industrial Corridor from Lepakshi to Orvakal, focusing on drones, defence, satellites, and automobiles. Within a year, this corridor is expected to attract Rs5 lakh crore investment and create 4.5 lakh jobs, Naidu recently stated in an address to the annual meeting of Confederation of Indian Industry (CII).

Five exclusive hubs (clusters) have been suggested by the State viz.Jaggaiahpet-Donakonda (6,000 acres), Lepakshi-Madakasira (10,000), Visakhapatnam-Anakapalli (3,000 acres), Kurnool-Orvakal 4,000 acres) and Tirupati region (unspecified area).Kurnool-Orvakal hub is being projected for investments in defence drones, robotics and advanced defence component manufacturing,Trupati will play host to advanced R&D institutes in defence innovations. The Centre has been asked to permit a DRDO Industry-Academica Centre of Excellence at IIT-Tirupati.

As Rs2.5 lakh crore investment is projected in the aerospace sector, AP wants to showcase the opportunities for making some investment as part of Hindustan Aeronautics Ltd (HAL)'s expansion for aircraft manufacturing by offering land and other facilities. An Indian Air Force station has been sought at Donakonda, about 400 km from Hyderabad.

AP is making efforts to integrate ports, airports, inland waterways, and highways to reduce logistics costs. "We also boast rich mineral wealth, tourism potential, and innovation hubs like the Ratan Tata Innovation Hub. Our hub-and-spoke model will empower empower industries to make our State $ 2.4 trillion economy by 2047—making Andhra Pradesh one of India’s most prosperous and inclusive states," he told the meeting.

Defence Minister Rajnath Singh has been represented to develop a defence manufacturing hub in Rayalaseema, to which the Defence Minister promised to consider favourably.A huge land bank has been identified admeasuring 10,000 acres for development of aircraft manufacturing and defence related industries. A senior official of AP Economic Development Board told Bizz Buzz that there is an encouraging response from the investors for creating facilities in aerospace, defence and drones. Besides expanding ISRO facilities, the government is keen on further expanding the proposed Rs2,200-crore Defence Strategic Integrated Complex at Palasamudram in Sri Satya district.