There is hope in the air for battered fabrication industries, many of which are sick or turning into non-performing assets, in the region.
The Centre has taken further steps in implementation of defence corridor projects in Tamil Nadu and Uttar Pradesh this year.
Earlier, industry bodies had urged the State government to play a pro-active role in early fructification of the project envisaging five nodes — Chennai, Coimbatore, Hosur, Salem, Tiruchi — in Tamil Nadu.
Hence, the Centre appointed a consultant in March for preparation of policy and detailed project report for the defence corridors.
Incentives to private players and foreign companies are provided under the policies.
Industry watchers in the State say the project in Uttar Pradesh with nodes in six locations — Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, Lucknow — has made better progress, with Hindustan Aeronautics Ltd. (HAL) committing capital investment of ₹1,200 crore over a period of five years in its units at Lucknow, Kanpur, Korwa and Naini.
Till date, six consultation meeting of stakeholders each in Uttar Pradesh and Tamil Nadu were organized across its various nodes.
Ordnance Factory Board, Defence Public Sector Undertakings and private industries have announced investments of approximately ₹3,700 crore for Uttar Pradesh and ₹3,100 crore for Tamil Nadu.
The Centre’s idea behind establishing the defence corridors is to catalyse indigenous production of defence and aerospace-related items, thereby reducing imports and promoting exports.
The government intends to attain self-reliance in defence, generate direct/indirect employment opportunities and bring about growth of private domestic manufacturers, micro, small and medium enterprises and start-ups.
Earlier this year, a roadmap for defence industries cooperation between India and South Korea was exchanged in a bilateral meeting.
The roadmap lists a number of possible areas of cooperation in land systems, naval systems, aero systems, guided weapon systems, including research and development cooperation, collaboration regarding testing, certification and quality assurance.
The roadmap aims to facilitate defence industries in participation and collaboration on ‘Make in India’ initiatives of the Centre.