Aerospace SEZ set to take off

24 companies form Samuha Engineering Industries Limited to generate global business in aerospace, defence, nuclear and other high precision products
Y. Mallikarjun
HYDERABAD:

The countrys rst Aerospace Special Economic Zone (SEZ) at Adibatla, near here, is set to take off with several of the Small and Medium Enterprises (SMEs) that came together to form a company to provide common test facility and standard labs, planning to begin construction in the next few months.

Kiran to lay foundation

As many as 24 companies that are members of the Aerospace Industries Association have formed Samuha Engineering Industries Limited to create world class infrastructure and generate global business in the area of aerospace, defence, nuclear and other high precision products. Chief Minister N. Kiran Ku-

mar Reddy will lay the foundation stone for taking up the infrastructure works by Samuha on November 4. The State Government had earmarked 100 acres for the Aerospace SEZ and another 93 acres for Domestic Tariff Area (DTA) and designated Andhra Pradesh Industrial Infrastructure Corporation (APIIC) as developer and Samuha as co-developer for the infrastructure. Seeking to take advantage of the Defence offset policy which stipulates that foreign companies should outsource 30 per cent of their supplies from local manufacturers, the cluster of companies under the name of Samuha propose to manufacture critical, high precision components and sub-systems for satellites, missiles, aircraft as also

equipments for nuclear reactors. According to M.M. Sreeram, Executive Director, Samuha said that six companies-- MTAR Technologies Pvt Ltd., Zetatek Industries, Ananth Technologies, SEC Industries, Scarlet Industries and SKM Technologieswould soon start construction of their facilities. He said full-scale commercial operations of these companies were expected to begin in two years. With the Indian Government planning to place orders worth Rs.8-10 lakh crore in the next 5-10 years with several foreign companies in the defence sector, a huge business would be generated for Indian industry, he added. He said the projected investment

in the SEZ was expected to be around Rs.1500 crore over the years with direct employment for about 10,000 people. According to Jayesh Ranjan, MD of APIIC, the forming of Samuha by different SMEs was a good example of organisational symbiosis. He said the defence offset policy would generate lot of demand for Indian companies in the coming years. He said the infrastructural needs such as the sub-station, water supply and internal roads were being developed APIIC. Samuha too would develop the area and allot land to the member units. He said that at least 80 per cent of the 24 companies that formed Samuha would start commercial production in three years.