A.P. attracts several investment proposals in aerospace and defence manufacturing sectors

Andhra Pradesh Government's efforts to attract Aerospace and Defence Manufacturing units are successful with OEMs showing interest in setting up facilities.

VIJAYAWADA

The Andhra Pradesh (A.P.) Government’s efforts to attract Aerospace and Defence Manufacturing (A&DM) units on a large scale appear to be yielding the desired result as a host of Original Equipment Manufacturers (OEM), most of them Micro, Small and Medium Enterprises (MSMEs) making niche products, have submitted proposals to set up their facilities in the State.

This is duly attributed to the goodwill which the government’s recently-appointed advisors G. Satheesh Reddy (former Chairman of the Defence Research and Development Organisation) and S. Somanath (former Chairman of the Indian Space Research Organisation) brought in for the State as it scouted for investments in the A&DM sector. 

For instance, it is reliably learnt that a Taiwanese company evinced interest in establishing a semiconductor manufacturing plant in Kurnool district and applied for land, and  necessary clearances under the India Semiconductor Mission. Then there are companies like Avantel Ltd. and Astra Microwave Products Ltd. exploring opportunities in A.P. 

In fact, Avantel Ltd., which installed the Mobile Satellite Services Network for the Indian Navy that provides voice and data communications among its ships, submarines and aircraft, and has multiple other technologies and digital solutions in its repertoire, sought land and certain incentives near Nuzvid in Eluru district for setting up a unit, and it is under consideration, according to official sources.

Bharat Dynamics Ltd, a defence PSU, is reportedly moving towards expansion at its manufacturing unit in the Visakhapatnam SEZ. Several other A&DM companies, including defence PSUs, are keen on investing in the State and have already reached out to the A.P. Government with the respective proposals. Goa Shipyard is also said to be looking at investment avenues in A.P.

In this context, the A.P. Government is offering all possible support and tailor-made incentives under the AP Aerospace & Defence Policy 4.0, 2025-29, which is in the process of being finalised. Under the policy, the government contemplated developing four clusters: naval shipbuilding and defence MRO (Maintenance, Repair and Overhaul), defence and aerospace manufacturing and missile and ammunition, and defence electronics manufacturing. For this, the Industries and Commerce Department of A.P. is following the French model of defence clusters, wherein OEM-led clusters hold the key in the development of the A&DM ecosystem.