Samooha Aerospace Park work set to begin at Hyderabad aerospace SEZ

Source: The Hindu Business Line Nov 1st, 2013

The country’s first Aerospace SEZ is all set to take off with a committed investment of Rs 1,500 crore.

With land allocated to 24 companies, the facility, situated in Adhibatla, about 15 km from the Rajiv Gandhi International Airport, on the outskirts of Hyderabad, will see action beginning on November 4.

At least half a dozen companies will begin work on that day, when the Andhra Pradesh Chief Minister, Kiran Kumar Reddy, is expected to kickstart activity at a foundation laying function.

Creating employment

The ambitious Aerospace & Precision Engineering SEZ will provide the infrastructure for these units to manufacture a range of products needed for the strategic sectors of aerospace, nuclear, space and defence.

The venture can provide direct employment of 10,000 and indirectly to another 18,000 in the next three years, as these manufacturing units, turn fully operational. The projected annual turnover is Rs 2,500 crore and exports to the tune of Rs 400 crore.

SMEs setting up shop

Among the two dozen SMEs that have taken land are Motion Dynamics, Gagan Aerospace, Aeroc Space Tech, Hemmair, Apollo Aerospace, DSR Tech, Lokesh Machine Tools, Gowra, Ratna Tools, Castall Tech, Compu Power, Rolon Seal and Revathy Industries, said M.M. Sreeram, Executive Director of Samuha Engineering Industries.

Samuha is a consortium of aerospace Industries, which will anchor the development of the aerospace park. MTAR, SEC Industries, Ananth Technologies, Zetatek, Scarlet and SKM Technologies are the main promoters.

At present, the Tatas have made major investments in a couple of ventures in the area, including in the SEZ. In the joint venture with Sikorsky, it manufactures helicopter cabins.

"The existence of a large number of SMEs with diverse expertise in Hyderabad has drawn the Tatas in a big way. Similarly, several other multinationals are showing keen interest," Sreeram said.

Offset provides big scope

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has allocated 193 acres at Adhibatla. Of this 100 acres will be for the SEZ for which the corporation is a co-developer.

The 93 acres in the Domestic Tariff Area (DTA) has been allotted to Samuha as a lead developer and to allot land to other member units, explained Jayesh Ranjan, Managing Director of the corporation.

The Aerospace SEZ will be the country’s first operational facility developed in an integrated manner. Samuha will develop this cluster, he said. Industries will share expertise and strengths in a symbiotic manner to meet big demands, especially that will emerge from the Defence offset policy and other strategic sectors, he told Business Line.

Thousands of crores of business is expected to flow to Indian industry as the offset makes it mandatory for winners of big defence contracts to source at least 30 per cent of the value from domestic industry/institutes.

As part of its effort Samuha will provide a Common Test Facility, Training Centre and Common marketing, HR, and Procurement facilities, exhibition and guest facilities, labs said Sreeram. The equity of the shareholder units will be in proportion to the land holding, he added.