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Discussion Starter #1 (Edited)
Indian government announced defence corridor for Coimbatore - 500 acres - Sulur

Indian government announced missiles storage Space in Coimbatore.

L&T, TATA, CODISSIA, reliance, HAL expressed interests in coimbatore to start manufacturing Defence products and Missiles Manufacturing and assembling plants in Coimbatore.

This mega project deserves a separate thread
 

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Discussion Starter #2
http://www.indiandefensenews.in/2019/12/500-acres-identified-near-sulur-to-set.html?m=1

https://m.timesofindia.com/city/coimbatore/500-acres-identified-near-sulur-to-set-up-defence-corridor/articleshow/72700717.cms


500 ACRES IDENTIFIED NEAR SULUR TO SET UP DEFENCE CORRIDOR

Coimbatore: State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Limited has identified 500 acres of land near Sulur and Karanampettai to set up a defence corridor.

SIPCOT will provide the compensation for patta lands to be acquired.

“As of now, we have identified 500 acres of land near Sulur and Karanampettai. We plan to conduct talks with the landowners to acquire the land from them to set up industrial units in the defence corridor. We are also trying to identify 500 more acres of land in the same locality,” a senior official from SIPCOT said.

He said the SIPCOT would bear the land acquisition cost and later the acquired land will be sold to industries willing to start their units in the defence corridor in Coimbatore.

He said Tata Group has approached SIPCOT seeking land in the defence corridor in Coimbatore. But the group has not informed about how much of land it would need to set up its manufacturing unit to make weapons for the defence sectors.

However, Tata Group officials have been asked to meet SIPCOT officials in Chennai in January 2020.

Similarly, Hindustan Aeronautics Limited (HAL), Bangalore, is also planning to establish its unit in Coimbatore defence corridor. HAL plays a vital role in manufacturing indigenous light combat aircraft (LCA) – Tejas. Coimbatore-based companies have also expressed their interests to set up their units in the corridor, the official said.

In a meeting held recently, a Coimbatore-based industrialist informed SIPCOT and district administration officials that he was ready to provide his 500 acres of land located at Sulthanpet to the defence corridor.

President of Coimbatore District Small Industries Association (CODISSIA) R Ramamurthy said the defence corridor would provide job opportunities to the youths of Coimbatore.

The Codissia Defence innovation and incubation centre will aim to produce seven new products every year. In a detailed project report, Codissia claimed that they can manufacture 75 defence items and they would complete 50 items within a target of three to four years.
 

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Discussion Starter #3
https://www.thehindu.com/news/cities/Coimbatore/coimbatores-wait-for-defence-sector-opportunities-continues/article30602225.ece

Coimbatore’s wait for defence sector opportunities continues

It was in 2018 that Coimbatore’s aspiration to become a manufacturing hub for the defence sector got much visibility as the then Defence Minister Nirmala Sitharaman assured her support to Micro, Small and Medium-scale Enterprises (MSMEs) that wanted to supply to the sector.

With a few companies, with different scales of manufacturing, already supplying to the defence sector, the industry had made a presentation to the Minister on the manufacturing capabilities of Coimbatore in the sector. The aim was to provide new opportunities to the MSMEs by supporting them to tap the potential in the defence sector.

Since then there had been meetings, project proposals, exhibitions, awareness programmes, and several efforts to bring to the city a Defence Innovation Hub and an incubation facility. Last year, the Tamil Nadu Defence Corridor was also launched, including Coimbatore in the corridor.

At present, less than 50 companies are supplying to the defence sector.

Detailed project report

The Coimbatore District Small Industries Association (Codissia) has submitted detailed project reports (DPR) for both the projects - the Defence Innovation Hub is a ₹45-crore project with ₹15 crore coming as grant, ₹5 crore as soft loan, ₹10 crore from the Atal Innovation Mission and another ₹10 crore and land and building from the Association. The other is the incubation facility in which the Government and the Association will contribute ₹10 crore each during a period of five years. The Government has approved both the project reports. But, it has decided to combine both. Hence, the final nod is awaited, industry sources said.

According to R. Ramamoorthy, president of Codissia, the innovation and incubation facilities will be housed in the same building. While the innovation centre will work on 70 products for the defence sector, the incubation facility will incubate seven projects a year. “Over a period of time, with several meetings, the projects have evolved. When approved and implemented, this project with both, the innovation and incubation facilities in the same building, will be the first of its kind in the country for the defence sector,” he said.

Meanwhile, the Association is co-ordinating with the Defence agencies. It is sourcing the tender documents and sharing with its members here so that they get an idea about the scope, their manufacturing capabilities and where the industry needs to improve, Mr. Ramamoorthy added.

The Codissia formed a single company, combining both the projects, a year ago and it is now trying to involve start-ups and commence works on defence projects possible. The Defence project was aimed at the future, to give a boost to the MSMEs here. However, with the current slowdown and hardly any signs of revival of demand, the manufacturing units here need the domestic Defence sector to take off so that they get orders, an industry source said.

Sub-contract opportunities

The Coimbatore Tirupur District Micro and Cottage Entrepreneur Association (COTMA) president C. Sivakumar said that only if the big companies get orders from the defence sector would the micro units get sub-contract opportunities. At present, units that were already supplying to defence continue to do so and the volume was not much. “It is very difficult for the micro sector to supply directly to the defence. Recently, we participated in a meeting with the Railways and some of us visited Perambur too. But, they are taking a lot of time to even finalise vendors and it involves a lot of procedures,” he said.

Common facilities

Another industry source said that MSMEs were reluctant to invest on their own in defence product manufacturing as the volume required was minimum. For some products they need to invest in drawing and developing a prototype and it was expensive. Common facilities would help in developing such products. “The ecosystem has to develop and it will take time. If the entire MSME segment here should benefit from the defence sector, the common facilities should take off,” the source said.
 

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Discussion Starter #4
https://www.investindia.gov.in/team-india-blogs/launchpad-opportunities-tamil-nadu-defense-aerospace-corridor


Launchpad for Opportunities: Tamil Nadu Defense & Aerospace Corridor


India is striding fast in thought and action to achieve self-reliance in defence procurement. The Defence Ministry envisages a turnover of INR 171,000 crore and achieving INR 35,000 crore in exports in military goods and services by 2025. Towards achieving this mission, the Government of India shall invest INR 70,000 crore in the creation of defence corridors and military platforms. The Defence Procurement Procedure also lays down the framework for a vibrant ecosystem which provides the much-needed boost to the private sector and for the DPSUs and the private sector to jointly power the self-reliance in defence equipment and services. The government in the last five years have relaxed the FDI in defence to 100% (49% automatic and up to 100% through government approval). Visit our resources section to read more about FDI in India.
Aerospace & Defence and Automotive manufacture have much in common ranging from quality requirements, advanced materials, electronics and embedded systems, mechanical components, engines, structures etc. India’s Defence Procurement Procedure released in 2016 (the chapter on Strategic Planning) also acknowledges the lack of a defence base in the private sector and in a way nudges manufacturing sectors with similar processes to drive defence manufacture.
Chennai the automotive capital of India and is the hub for automotive manufacture in South Asia. Tamil Nadu’s mature automotive sector is a platform for the Defence and Aerospace equipment manufacture to take off.
On January 21, 2019, the Minister of Defence in India inaugurated the Defence Corridor in the south Indian state of Tamil Nadu. INR 3,100 crore is pledged by the DPSUs and the private sector in 5 cities which form the nodes of the “Defence Quadrilateral”. The choice of the nodes, supporting supply chain by the MSMEs and the advantage of the state of Tamil Nadu make the Defence corridor in Tamil Nadu a truly preferred destination for defence and aerospace sector investors.
The Government plans to develop Aerospace and Defence clusters in the various nodes.



Coimbatore

The entrepreneur rich city is a strong base for foundry, machining, tooling and forging. Coimbatore also has a large base for auto-ancillaries manufacturing in the country. It is an education hub with a large number of engineering and Industrial Training Institutes supplying technical talent to the nation. Termed the “Manchester of South India” it pioneered the industrial development in India. Currently, over 14,000 MSMEs support the supply chain across foundry, motor & pumps, auto-components and tooling sectors.
Erstwhile Textool, a medium enterprise manufactured sten machine guns post-independence. The Cordite Factory that manufactures short firearms in Ooty is near Coimbatore District.
 

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Discussion Starter #5 (Edited)
Defence sector: potential high for SMEs

‘Coimbatore has the capacity to make any component for the sector’

A Small and Medium Enterprise (SME) facility in Coimbatore supplies products to one of the defence research organisations since the 1970s. Its been a long and arduous journey as the task of re-engineering, developing, and supplying the product took time, continuous effort, and investment.

“ We started it (supplying to the organisation) in 1973. We got the order as India was importing the product then and indigenisation brought down the costs tremendously. But, we faced a lot of hurdles. Some raw materials were not available in India. We had to import it and no one was willing to even give quotes. Our facility was very small then. Yet, we had skilled workers who could do the required job,” says the entrepreneur who operates the facility.

The company now makes almost 90 % of the components for the product in-house and has expanded its supply to the defence.

“For one of the products that we supply, it took three years to get approval. We need patience and resources to develop, get approvals, and start supplying the product,” the entrepreneur adds.

The engineering hub of Coimbatore has 30 to 40 such SMEs that supply to the defence sector. Many of these have, over the years, only widened the basket of products that they supply to the sector.

In the recent years, nearly half a dozen large companies in Coimbatore have also started manufacturing for the defence. Further, the State Government plans to develop an aero defence park on 500 acres at Sulur, the Coimbatore District Small Industries Association (CODISSIA) is all set to establish defence innovation and incubation facilities here with the support of the Central Government, and Coimbatore is part of the Defence Corridor project.

Despite the challenges involved in manufacturing and supplying for the defence, Coimbatore has the capacity to make any component for the sector, say industry owners here.

The CODISSIA has short-listed 50 products that will be developed and supplied by MSMEs here for the defence sector by its Defence Innovation Hub. “Only the big companies can invest in research and development. The smaller ones will not be able to do so. The CODISSIA had two projects - an innovation hub and an incubation facility. Infrastructure has to be developed for the incubation.

The association has submitted detailed projects reports to the government for both. The hub will partner with SMEs that can produce the identified products. It will develop the products, and give the units the draft plan, the standard operating procedure, etc.,” says R. Ramamurthy, president of CODISSIA.

The hub is expected to take off shortly and will be established properly by December. “Almost all the SMEs have spare capacities. If a specific product is developed and given to them, they will be able to manufacture it,” he says.

“This is a tough sector. But, the innovation hub will be a model when we implement it,” he adds.

Further, investments by the large-scale companies in the defence sector and the innovation hub are expected to develop a strong supply chain here for the defence sector.

Several MSMEs will become vendors. Some of the components are general and can be sourced from the MSMEs. Some need to be developed specifically. When a job is outsourced, the cost will come down.

Coimbatore District Lead Bank manager S. Venkataraman says the defence corridor is a new project. “It is still in a primitive stage. So the banks have not yet gone into large-scale funding the sector here.

Financial support

However, when it develops, there will be a boom for industries, the city, and the banking sector.” Industries that invest in it will need financial support.

Any business that is approved by the government will be able to get bank loan.

Banks can extend credit based on performance or financial guarantee too.

So, funding the defence sector projects will not be a problem, he says.

An official of the District Industries Centre says it had received one proposal for single window clearance and it was for the defence. As the industry grows, testing facilities should also be developed.

Coimbatore has taken its first steps in the defence area. But it has a long way to go.

https://www.thehindu.com/news/cities/Coimbatore/defence-sector-potential-high-for-smes/article28287894.ece
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Discussion Starter #6 (Edited)
Rajnath invites defence majors to invest in India


https://www.theweek.in/wire-updates/business/2019/11/18/fgn30-thai-rajnath-defence.html


Bangkok, Nov 18 (PTI) India has set a target of exporting military equipment worth USD five billion by 2025, Defence Minister Rajnath Singh said here on Monday, inviting global defence majors to be part of India growth story.
In an address at a seminar on 'India rising', he said the Modi government was committed to make the country a major hub of defence manufacturing and transform it into a USD 26 billion industry in the next six years.
Singh said USD 10 billion investment in aerospace and defence goods and services was expected by 2025 which could provide employment to 2-3 million people.
He is in Bangkok primarily to attend the ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus) grouping, a platform comprising ASEAN and its eight dialogue partners including India.
The defence minister said a new policy for transfer of technology (ToT) was being formulated to simplify the process to transfer technology developed by DRDO to the industry.
He said more than 900 ToT licensing agreements had been signed with industries so far.
"The government has set a target of taking India's defence exports to USD five billion by 2025 under the 'Draft Defence Production Policy 2018'," Singh said.
"On one hand this target is ambitious, but at the same time it is encouraging that India's defence exports have grown almost six-fold in the last two years," he added.
Singh said the defence sector was given prominence under the 'Make in India' initiative and the aim is to reduce dependence on imports and make the country a net exporter of defence equipment and platforms.
He also listed out various initiatives taken by the defence ministry to encourage exports.
These include, simplification of procedures for exports, simplification of industry licensing process, increase in foreign direct investment (FDI) cap, streamlining of defence offset policy and making government trial and testing facilities available to the private sector, he said.
Singh said the defence procurement procedure was revised in 2016 to encourage the domestic defence industry. A new category 'Buy Indian - IDDM (Indigenously Designed, Developed and Manufactured) was introduced to promote indigenous design and development of defence equipment.
"The government's desire to establish two defence corridors in Tamil Nadu and Uttar Pradesh is clear. A Defence innovation hub is already functioning in Coimbatore. A Defence Planning Committee has also been formed," said Singh, listing steps to encourage the domestic defence manufacturing.
"The government of Uttar Pradesh has planned to build a defence manufacturing corridor along with the proposed Bundelkhand expressway which will help in making India self-reliant in the field of defence production," Singh added.
He said government had undertaken far-reaching reforms in the last five and a half years to increase synergy between public and private sectors.
"It has contributed positively in defence production and procurement. Work is on to introduce a common testing and certification scheme under a public private partnership model to create an enabling environment," he said.
Singh voiced the government's resolve to promote self-reliance in defence through five I's - Identification, Incubation, Innovation, Integration and Indigenisation.
He said the defence ministry has set a target to fund 250 startups, 16 personal initiatives and five defence innovation hubs through Defence Innovation Organisation (DIO) in the next five years.
Singh also invited domestic and overseas investors to actively participate in the forthcoming DefExpo to be held in Lucknow from February 5-8 next year.
 

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Discussion Starter #7
https://economictimes.indiatimes.com/news/defence/lt-mbda-missile-systems-sets-up-missile-integration-facility-in-tamil-nadu/articleshow/73894144.cms


L&T MBDA Missile Systems sets up missile integration facility in Tamil Nadu

IMG_9308.JPG


New Delhi: Engineering and construction major Larsen & Toubro on Monday said its joint venture with European defence major MBDA Missile Systems -- L&T MBDA Missile Systems (LTMMSL), has set up a missile integration facility in Tamil Nadu. "LTMMSL has set up the assembly, 'inert' integration (without explosives) and testing facility for missile sub-systems and missile weapon launch systems spread across an area of 16,000 sq meter in a special economic zone at Coimbatore," Larsen & Toubro (L&T) said in a regulatory filing.

'Inert' refers to systems integration process without explosive component of the missile systems being handled at the facility.

Founded in 2017, LTMMSL has received a few export orders and the new facility shall start delivering weapon systems using test equipment such as missile launchers and airframe segments, including control actuation units, from calendar year 2020, the filing added.

L&T owns 51 per cent stake in the JV, while the rest 49 per cent is owned by the European partner.

"L&T MBDA Missile Systems has been working proactively to offer advanced missiles and missile systems to the Indian Armed Forces through domestic production. The creation of this new integration facility at Coimbatore is a first step in this direction. We are showcasing some of these next-gen offerings at the DEFEXP020 to be held at Lucknow," said J D Patil, Chairman L&T MBDA Missile Systems.

Pasquale Di Bartolomeo, Vice Chairman and Member of the Board L&T MBDA Missile Systems, said: "With the technical and human capabilities offered by this site, India will be ideally placed to offer its armed forces and the export market the very latest generation of defence equipment technology."
 

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Discussion Starter #8
Defence park planned in Coimbatore


https://www.thehindu.com/news/cities/Coimbatore/defence-park-planned-in-coimbatore/article28112237.ece


The State Government is taking steps to set up a defence and aero park in Sulur on 500 acres, Minister for Municipal Administration and Rural Development S.P. Velumani said here on Saturday.

Speaking at a session on “Ease of Doing Business in Tamil Nadu” organised by the Confederation of Indian Industry (CII), the Minister spoke about the initiatives of the State Government to boost industrial activity in Tamil Nadu. The second edition of the Global Investors Meet attracted ₹32,206 crore investment from the Micro, Small and Medium-scale Enterprises (MSMEs). The State budget this year had an allocation of ₹2,747 crore for the industries.

According to M.C. Sampath, the Industries Minister, the proposed Chennai - Kanyakumari Industrial Corridor will cover 23 districts and will be developed with financial support from the Asian Development Bank. The State already has the defence industrial corridor. Tamil Nadu has the highest number of skilled manpower and has a favourable eco system for industrial investments. Since the introduction of the single window approval system, 430 MSMEs and 41 large-scale industries have received approvals through it.

Mr. Sampath said the average per capita income in Coimbatore is higher compared to the State average. This is because of the industrial activity here. He urged the industry owners to give their views on how the ease of doing business can be improved.
 

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Discussion Starter #9
Defence innovation hub work set to begin soon

Coimbatore: With the Union government approving the detailed project report for the Codissia Defence Innovation and Atal Incubation Centre last week, the construction work of the centre will begin in May-June, said representatives of the Coimbatore District Small Industries Association (Codissia).

https://timesofindia.indiatimes.com/city/coimbatore/defence-innovation-hub-work-set-to-begin-soon/articleshow/74274689.cms
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