The second edition of the investors meet is likely to see the State unveil its Aerospace and Defence Industrial Policy

CHENNAI: Tamil Nadu has been preparing Aerospace and Defence Industrial Policy since 2015 and it is likely that the policy will be unveiled during the second edition of the Global Investors Meet set to kick-off here on Wednesday.

It is learnt that the state has been targeting an investment of more than $10 billion in aerospace and defence manufacturing in five to 10 years besides generating jobs for one lakh people in the state.

Sources said that the idea is to create an end-to-end ecosystem for aerospace sector development covering design, engineering and manufacturing of aircraft for the civil and defence sector. The plan is also to attract original equipment manufacturers and Tier-1 suppliers and India majors as anchor units in State by providing required facilities and support at competitive rates.

Sources said that the government will adopt cluster development approach to building aerospace and defence manufacturing Eco-System by creating required physical infrastructure. The aerospace and defence industries clusters will be developed through public and private participation with the state providing a special incentive package of assistance and equity participation.

It is learnt that aerospace and defence parks in multiple locations with adequate infrastructure will be used for housing larger and smaller aerospace companies in the areas of forging, casting and fabrication; metal or composite manufacturing facilities; design or engineering services, assembly and maintenance facilities. 

In a bid to develop aerospace related talent and skills, the government will encourage engineering colleges and universities to include aerospace and astrospace technologies as part of curriculum. Not only that, the state will partner with global or Indian OEMs or institutions on a public private participation mode to provide aerospace specific training curriculum. There are also plans to set up special aerospace university or Centre for Excellence by providing appropriate grants and incentives, sources added.

Since the aerospace industry requires large upfront investments, the state government could also provide necessary assistance through creation of a Viability Gap or Venture Capital Funding mechanism exclusively for aerospace industries with a corpus of more than `100 crore. The areas eligible would be research and development, technology centres, cluster development and aircraft manufacturing units.

It is learnt that the government is also looking to set up aerospace research parks by offering incentives and subsidies. Sources said that the government is planning structured package of incentives for companies based on investments, which are categorised under various heads.

Window of Opportunity

The second edition of the investors meet is likely to see the State unveil its Aerospace and Defence Industrial Policy. The government is also planning a slew of other measures to give the sectors a massive boost and generate jobs

- Aerospace and Defence Industrial Policy is being prepared since 2015

- It is learnt that the state is targeting an investment of more than $10 billion in aerospace and defence manufacturing in the next five to 10 years

- TN to attract original equipment manufacturers and Tier-1 suppliers and India majors as anchor units

- Engineering colleges and universities encouraged to include aerospace and astrospace technologies as part of curriculum

- Plans to set up Special Aerospace University or Centre for Excellence by providing appropriate grants and incentives