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Defence Industrial Corridors in India: Plans and Prospects

Published Mar 16, 2018
Updated Apr 08, 2021

Defence Industrial Corridors in India: Plans and Prospects

 The Ministry of Defence along with state governments is promoting two defence industrial corridors in India. This was announced in the parliament by Finance Minister Arun Jaitley in his budget speech on 27 February.

The two defence industrial corridors are planned to link industrial centres in Tamil Nadu and Karnataka in the South and Uttar Pradesh in the North. The plans and prospects of these needs to be explored, starting with the Southern corridor.

The focus of Chennai as a defence industrial hub was evident with the Defence Minister Ms Nirmala Sitharaman announcing on 18 January that the Defence Expo 2018 will be held in the State from 11 to 14 April. There was speculation that the Defence Expo will be held in Goa the 2016 venue however the last minute change to Chennai has surprised many.

Never the less inaugurating a two day ‘Defence Industry Development Meet’ organised by Department of Defence Production, Ministry of Defence (MoD) NirmalaSitharaman in the presence of Tamil Nadu Chief Minister Shri Edappadi K. Palaniswami at Kalaivanar Arangam in Chennai set the tone for an initiative to encourage and facilitate participation of private industries especially MSMEs in Defence Manufacturing.

The Tamil Nadu corridor, which is organized as a quadrilateral will extend from Chennai, Hosur, Coimbatore, Salem and Tiruchirappalli and is being called the Tamil Nadu Defence Quad. Work for preparing Detailed Project Report(DPR) for the Tamil Nadu Defence Quad has been initiated by Department of Defence Production. The Department will engage a top consultancy firm to draw up the DPR for the Quad.

Interactions involving senior officers from MoD, representatives of Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Bharat Earth Movers Ltd. and Ordnance Factories with the local industries in these places have already commenced. These interactions are being organized with the active participation of the local Small Scale Industries Associations and the State Government representatives.

Tamil Nadu Deputy Chief Minister  Mr O. Panneerselvam, presenting the Budget for the year 2018-2019 to the Legislative Assembly on 15th March 2018 announced that the Government will give a special emphasis to establish Aero Space Park and defense manufacturing corridor which is expected to attract Rs.10,000 crore investment.  He underlined the facilitation of the automobile sector’s presence in the State to build up on the proposal for indigenous defence industry.

Tamil Nadu has a strong industrial eco-system and the Ministry of Defence hopes to capitalize on the same which when linked to the aerospace hubs of Bangalore and Hyderabad has good prospects for growth.

The second corridor is planned in the North in Uttar Pradesh

Prime Minister Narendra Modi announced at the UP investors’ summit that a defence industrial corridor proposed in the Union Budget will be built in Bundelkhand, bringing investment of Rs 20,000 crore to the most backward region of Uttar Pradesh and creating 2.5 lakh jobs,

Raksha Mantri Smt Nirmala Sitharaman addressed the plenary session on ‘Defence and Aerospace : Investment  opportunities in Uttar Pradesh’ in Lucknow during the Investor Summit. She said that Uttar Pradesh Defence Industrial Corridor is proposed in a stretch between Aligarh, Agra, Jhansi, Chitrakoot to include Kanpur and Lucknow. The Defence Corridor in UP will leverage the existing ordnance factories and defence PSU establishments in UP.

The aim is to provide an impetus to Bundelkhand which is one of the most backward areas in the state well nigh in the country as a whole.  Ms Sitharaman  is hopeful that low cost of land and low wage rate with adequate supply of manpower will be an attraction of the UP Defence Industrial Corridor.

This belt has a number of defence ordnance factories stretching from Kanpur to Itarsi and in the future Jabalpur in Madhya Pradesh may also be connected. The main hub in this corridor will be Kanpur which has a number of ordnance factories, such as the Small Arms Factory, (SAF) Ordnance Parachute Factory, OPF) Ordnance Equipment Factory (OEFC).  These are likely to be linked to the Ordnance Equipment Factory Hazratpur, Firozabad (OEFHZ)  and Ordnance Clothing Factory Shahjahanpur (OCFS).

The Hindustan Aeronautics Ltd (HAL) also has a number of manufacturing facilities in Kanpur.

There is an expectation of developing a large defence industry in this belt based on the basic industrial infrastructure however lack of an established private eco-system as in Chennai may mar comparative growth and will be primarily dependent on government investments. In addition skilled labour, project management staff and manufacturing base remains concerns

Details of these proposals and the facilitation planned are covered as per links below-

Raksha Mantri on Defence and Aerospace:Investment Opportunities in Uttar Pradesh

Uttar Pradesh Defence Industrial Corridor is proposed in a stretch between Aligarh, Agra, Jhansi, Chitrakoot and it also includes Kanpur and Lucknow.

Work on Tamil Nadu Defence Quad Begins

Work for preparing Detailed Project Report(DPR) for the Tamil Nadu Defence Quad has been initiated by Department of Defence Production

DefExpo 2018 – showcasing India: The emerging Defence manufacturing Hub

DefExpo 2018 will, for the first time, project India’s Defence manufacturing capabilities to the world.

RM’s Advisory Committee on Ministry oF Defence Capital Projects Approved

Nirmala Sitharaman constituted 13 member Raksha Mantri’s Advisory Committee on Ministry of Defence Capital Projects.

Simplified ‘Make-II’: Major Steps Towards ‘Make in India’ in Defence Production

Major boost to Make in India in Defence, Defence Acquisition Council.

The Ministry of Defence along with state governments is promoting two defence industrial corridors in India. This was announced in the parliament by Finance Minister Arun Jaitley in his budget speech on 27 February.

The two defence industrial corridors are planned to link industrial centres in Tamil Nadu and Karnataka in the South and Uttar Pradesh in the North. The plans and prospects of these needs to be explored, starting with the Southern corridor.

The focus of Chennai as a defence industrial hub was evident with the Defence Minister Ms Nirmala Sitharaman announcing on 18 January that the Defence Expo 2018 will be held in the State from 11 to 14 April. There was speculation that the Defence Expo will be held in Goa the 2016 venue however the last minute change to Chennai has surprised many.

Never the less inaugurating a two day ‘Defence Industry Development Meet’ organised by Department of Defence Production, Ministry of Defence (MoD) NirmalaSitharaman in the presence of Tamil Nadu Chief Minister Shri Edappadi K. Palaniswami at Kalaivanar Arangam in Chennai set the tone for an initiative to encourage and facilitate participation of private industries especially MSMEs in Defence Manufacturing.

The Tamil Nadu corridor, which is organized as a quadrilateral will extend from Chennai, Hosur, Coimbatore, Salem and Tiruchirappalli and is being called the Tamil Nadu Defence Quad. Work for preparing Detailed Project Report(DPR) for the Tamil Nadu Defence Quad has been initiated by Department of Defence Production. The Department will engage a top consultancy firm to draw up the DPR for the Quad.

Interactions involving senior officers from MoD, representatives of Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Bharat Earth Movers Ltd. and Ordnance Factories with the local industries in these places have already commenced. These interactions are being organized with the active participation of the local Small Scale Industries Associations and the State Government representatives.

Tamil Nadu Deputy Chief Minister  Mr O. Panneerselvam, presenting the Budget for the year 2018-2019 to the Legislative Assembly on 15th March 2018 announced that the Government will give a special emphasis to establish Aero Space Park and defense manufacturing corridor which is expected to attract Rs.10,000 crore investment.  He underlined the facilitation of the automobile sector’s presence in the State to build up on the proposal for indigenous defence industry.

Tamil Nadu has a strong industrial eco-system and the Ministry of Defence hopes to capitalize on the same which when linked to the aerospace hubs of Bangalore and Hyderabad has good prospects for growth.

The second corridor is planned in the North in Uttar Pradesh

Prime Minister Narendra Modi announced at the UP investors’ summit that a defence industrial corridor proposed in the Union Budget will be built in Bundelkhand, bringing investment of Rs 20,000 crore to the most backward region of Uttar Pradesh and creating 2.5 lakh jobs,

Raksha Mantri Smt Nirmala Sitharaman addressed the plenary session on ‘Defence and Aerospace : Investment  opportunities in Uttar Pradesh’ in Lucknow during the Investor Summit. She said that Uttar Pradesh Defence Industrial Corridor is proposed in a stretch between Aligarh, Agra, Jhansi, Chitrakoot to include Kanpur and Lucknow. The Defence Corridor in UP will leverage the existing ordnance factories and defence PSU establishments in UP.

The aim is to provide an impetus to Bundelkhand which is one of the most backward areas in the state well nigh in the country as a whole.  Ms Sitharaman  is hopeful that low cost of land and low wage rate with adequate supply of manpower will be an attraction of the UP Defence Industrial Corridor.

This belt has a number of defence ordnance factories stretching from Kanpur to Itarsi and in the future Jabalpur in Madhya Pradesh may also be connected. The main hub in this corridor will be Kanpur which has a number of ordnance factories, such as the Small Arms Factory, (SAF) Ordnance Parachute Factory, OPF) Ordnance Equipment Factory (OEFC).  These are likely to be linked to the Ordnance Equipment Factory Hazratpur, Firozabad (OEFHZ)  and Ordnance Clothing Factory Shahjahanpur (OCFS).

The Hindustan Aeronautics Ltd (HAL) also has a number of manufacturing facilities in Kanpur.

There is an expectation of developing a large defence industry in this belt based on the basic industrial infrastructure however lack of an established private eco-system as in Chennai may mar comparative growth and will be primarily dependent on government investments. In addition skilled labour, project management staff and manufacturing base remains concerns.

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