Centre proposes Smart Manufacturing Center in Telangana

Hyderabad, Nov 30 (INN): The Center proposes to set up a Center for Excellence (CoE) on Smart Manufacturing in Telangana and is currently working on the Detailed Proposal Report. This Center will develop new processes for defence manufacturing and import special equipment in the initial stages, Dr. V.K. Saraswat, full-time member of NITI Aayog for former Secretary, Dept. of Defence R&D said at the inaugural session of the three-day conclave on Defence & Aerosupply India 2015 being organized by Kenes Exhibitions and Telangana Government.

Dr. Saraswat said NITI Aayog is working with Government of Telangana to set up this Center and highlighted the importance of Smart Manufacturing. Initially, special equipment could be imported to start the center but Govt. needs to set up the equipment manufacturing in India with machine manufacturing and needs a lot of training and skilled manpower. Govt. of Telangana can leverage the huge software expertise prevalent in Hyderabad to offer the training and help integrate with the Center. New trends in advanced manufacturing technology help in reduction of wastage, lead time and costs, which are critical for growth of this sector, he said.

The potential to invest in Defence & Aerospace manufacturing in India is currently estimated to be $80 billion by 2024 and hopes Govt. of Telangana sets a goal to capture $10 billion of this business. Predominantly, Defence & Aerospace manufacturing is centered in Bangalore, Hyderabad and Pune but with ease of doing business improving in Telangana due to the new Industrial Policy, the State is well poised for growth in the sector, Dr. Saraswat said. India is the third largest aerospace market after US & China with a potential of $USD 150 billion in next 10 years.

To capture huge emerging market opportunity, India should adopt a strategy of Self Reliance that focuses on Buy (Import) to Buy & Make (India) to Make (in India). Dr. Saraswat said the revised slogan of PM Narendra Modi is Design & Make in India, if the country has to be Future Ready in the Defence & Aerospace industry. The Indian Defense System requirements is valued at $USD 150 billion of which 30% if being offered as offset market opportunity. Dr. Saraswat called for a Synergy between Defence R&D labs, Academic institutions and Industry to help the country capture this huge offset market opportunity. He also called upon the Government to remove disabling factors impeding the growth of this sector that include lack of infrastructure, ease of doing business, policy reforms and high cost of capital.

Earlier, Chief Secretary Dr. Rajiv Sharma spoke about the overall policy scenario on Defence and Aerospace in India and highlighted the recent changes to the Defence Procurement Policy. This policy is expected to be announced shortly and aims to address some of major shortcoming of the defence & aerospace industry.

Industries Minister Jupally Krishna Rao invited industry to set up their manufacturing units in the new State. Speaking about the new industrial policy that focuses of ease of doing business, faster approvals & clearances to set up industry in Telangana, Rao said the State Govt. is keen to promote Hyderabad as Defence & Aerospace Hub. The Defence Policy of the State Government will be announced shortly and incorporate the learnings and deliberations of the 3-day global conclave. He also spoke about the presence of large number of defence R&D labs and SMEs based as the eco-system present in Hyderabad to help growth of the sector.

The other speakers at the conference day included Itzhak Nissan, former CEO & President of Israel Aerospace Industries, Israel, Venkat Katkuri, Head – Airbus Defense & Space – India, K. Rambabu, Scientist G & Director (Space Systems & Technologies), RCI (DRDO) and Udit Narula, Senior Consultant Aerospace & Defense, Ernst & Young. (INN)