A day after Andhra Pradesh chief minister N Chandrababu Naidu made a strong pitch for investment from aerospace and defence majors at Aero India, the neighbouring state Telangana also used the same platform to attract investors at Aero India.
Telangana, the youngest state in India, is expanding its existing aerospace special economic zone near Hyderabad international airport with an addition of 1,000 acres. “The Hyderabad Aerospace SEZ is the first exclusive park for aerospace companies in the country. We have identified 1,000 acres additional land to accommodate new industries,” Industries minister J Krishna Rao told reporters.
Rao visited Aero India show on Friday along with a team of senior officials to seek investments in the aerospace sector. The team is holding a series of meetings with various industries at the air show, he said.
The government of Telangana, which released its industries policy about a month ago, is hopeful of getting around Rs 7,000 to Rs 8,000 crore from more than 20 applications received in the last one month, Rao said in a reply to a query from Business Standard.
“Our industries policy will ensure that all industrial projects applied in the state will get all necessary approvals within 15 days and MSME applications will be approved in a month’s time.” Rao said.
Telangana government last November had announced its new industrial policy, which provides entrepreneurs right to time-bound clearance of business proposals, promising zero graft and proposing six industrial corridors and other initiatives.
Rao said many such applications from investors are in the pipeline, he added.
Under the new policy all mega projects (with investment of Rs 200 crore) will get clearance in 15 days. The government has promised that it would punish concerned departments if they fail to clear the proposals in the stipulated time, Rao said.
“The Hyderabad region has attracted around Rs 25,000 crore investment in the last two years and aerospace sector alone accounts for about Rs 2,000 crore,” K Pradeep Chandra, special chief secretary and commissioner for industrial promotion and mines, Telangana, said.
He said Hyderabad has emerged as the preferred destination for investors in defence and aerospace, and in the last six decades public institutions relating to defence, including DRDO, BEL, BDL and ECIL are existing in Hyderabad.
“Companies relating to aerospace and defence sector are well distributed in Telangana. Apart from the government establishments, we have large players in private sector which are anchored by Tata Advance Systems. We have investments from companies like Lockheed Martin, Pratt and Whitney and Sikorsky,” he said.
Hyderabad also enjoys locational advantage, most of the districts are 100 to 120 kilometers away from Hyderabad, which will benefit entrepreneurs in terms of business, Rao said.
Moreover, Telangana, unlike other states, has a land bank of 250,000 acres for industrial purposes, Rao added.