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  1. GMR Group setting up defence manufacturing centre in Tamil Nadu

GMR Group setting up defence manufacturing centre in Tamil Nadu

Infrastructure major GMR Group is setting up an aerospace and defence manufacturing hub at its special investment region, Hosur (GKSIR), in Tamil Nadu’s Krishnagiri district, to encourage indigenous production of defence equipment in the country.

By: | Chennai | Published: April 12, 2018 1:56 AM
defence expo 2018, tamil nadu, gmr group, Defence Industrial Production Corridor Under the Make in India initiative, the government has recently announced setting up of a Defence Industrial Production Corridor (DIPC) in Tamil Nadu.

Infrastructure major GMR Group is setting up an aerospace and defence manufacturing hub at its special investment region, Hosur (GKSIR), in Tamil Nadu’s Krishnagiri district, to encourage indigenous production of defence equipment in the country.
The project is a joint venture (JV) between GMR Group and the Tamil Nadu Industrial Development Corporation (TIDCO). Under this project, approximately 600 acres of prime industrial land has been made ready for immediate occupation.

Speaking to FE over phone in Chennai on Wednesday, a spokesperson of the project said: “We are developing the first phase of the project currently and we hope to put the necessary infrastructure, including, power, water, roads and lights, among other basic amenities, over the next few months and the project will start attracting investments from prospective medium and big manufacturers of ancillaries related to the defence sector in India and abroad.”

To a specific question, the official said the group is developing the project with an estimated investment of Rs 1,000 crore and in the first phase, 300 acres of land would be developed to attract at least 15 to 20 players (depending on the size). The first phase will attract a minimum investment of Rs 2,500 crore from participants with thousands of job creations.

According to him, the proposed hub is an ideal location for defence related manufacturing. Major defence public sector undertakings (DPSUs) such as Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Bharat Earth Movers (BEML) and Defence Research and Development Organisation (DRDO) are only 50-60 km. The hub also benefits from the established industrial ecosystem in Hosur, 700+ MSMEs engaged in precision engineering in the region. Proximity to Bengaluru ensures ready access to skilled manpower.

Under the Make in India initiative, the government has recently announced setting up of a Defence Industrial Production Corridor (DIPC) in Tamil Nadu. The corridor will connect Hosur and Chennai, with Kattupalli port, Chennai, Tiruchi, Coimbatore and Hosur as its key nodes, and aims to provide impetus to the defence production industry in the country and in the region, in particular. The proposed defence manufacturing hub at GKSIR, Hosur is a step in making this vision a reality, he said.

BVN Rao, business chairman (transportation & urban infrastructure), GMR Group, said, “This defence manufacturing hub can potentially be a game-changer for the region. We will be providing all the necessary infrastructure facilities to attract global majors to set up their manufacturing facilities here. GKSIR Hosur is keen to set an international benchmark.”
To accelerate this effort, the GKSIR is also being showcased in DefExpo 2018. The GKSIR team will be taking potential investors through the salient points of the project and discussing potential opportunities for investments.

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