Andhra Prades

Nod for German firm’s aircraft parts making unit in Anantapur

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The Grob facility at Gudipalli to be second biggest investment in a single unit

Andhra Pradesh has a major investment of ₹300 crore lined up in the proposed aerospace and defence park in Anantapur district.

The Industries Department has cleared the investment for the establishment of a high-precision aircraft parts manufacturing unit by the German conglomerate, Grob, at Gudipalli, according to reliable sources.

It will be the second biggest investment in a single unit in the manufacturing sector in Anantapur after the nearly ₹13,000 crore put in by the KIA Motors in its car-making facility at Yarramanchi of Penugonda mandal.

Incentives

Various incentives have been offered to the German firm as per the Aerospace and Defence Manufacturing Policy 2015-20, which targets investments of ₹20,000 crore by 2020.

It, however, depends on the defence industry picking up new locations, where the 10% offset obligation under the Government of India’s Defence Procurement Policy can be discharged.

The clearance for the Grob facility gives a fillip to industrial growth in the backward Rayalaseema region. The government has also paid due attention to attracting investments in the area of aircraft maintenance, repair and overhaul.

Besides, Donakonda in Prakasam district has been brought as a node under the Visakhapatnam - Chennai Industrial Corridor.

With Anantapur, Chittoor and Kurnool attracting sizeable investments, the government is now focusing on Kadapa district, where no large manufacturing industry has so far been set up.

Kadapa steel plant

For now, the proposed steel plant offers a ray of hope, but it is mired in uncertainty due to technical and other issues between the Central and State governments. The Ministry of Steel is yet to give its nod for the Kadapa steel plant project, whose iron ore requirement is planned to be largely met from the mines in Anantapur. Meanwhile, emphasis is laid on the Kopparthy Industrial Park in Kadapa to attract MSME.

A total of 31 MSME parks have been readied by the A.P. Industrial Infrastructure Corporation. Infrastructure creation in these parks has almost been completed.

EODB ranking

Meanwhile, The Kerala and Puducherry governments have sought the guidance of the A.P. Industries Department for improving their performance in the Ease-Of-Doing-Business (EODB) impressed by the No. 1 position bagged by the State for two years in a row.