Sriperumbudur gets boost with Rs 1,000 crore aero park

An investment of Rs 1,000 crore in five years in this park will mean the stage is set for the next level of evolution of the state’s industrial development.

Atulya Misra, Principal Secretary, Industries, told DTNext: “Across the world, there is a perceivable shift towards aerospace. In India, it is expected to touch $200 billion in the next decade.” Noting that manufacturing will continue to prosper, the Secretary said the upcoming facility will supplement the existing infrastructure. Misra also dispelled the notion of a decline in industrial activity. He said, “It is a misnomer as we have had a significantly encouraging year with companies such as Ceat and PSA Peugeot (the brownfield project after the Hindustan Motors takeover) firming up their ventures. The sentiment of the industry is positive, a fact amplified by the continued presence of over 50 Fortune companies in TN.”

Admitting that locations like Sriperumbudur were getting congested which led to the shift in focus to promote Southern TN, Misra said lot of acquisitions were happening privately even as the industry department is ready with 2,000-3,000 acres for fresh development. “This corridor will always remain the core economic spine of TN. How long can we keep manufacturing nuts and bolts? The aerospace park will significantly gear us for the next leap – moving from manufacturing to hi-tech manufacturing – a horizon that is to be conquered,” said another senior bureaucrat, who spoke on condition of anonymity.

Elaborating, the official said, aerospace is a long-gestation industry, wherein arduous processes and precision manufacturing, among other factors, were focus areas. “TN has always been a front-runner. We do not want to be left behind and the offset policy gives us enormous scope to develop a solid backbone for aerospace sector,” the person said, adding that enquiries for setting up industries were happening at a rapid pace.

As many as 43 of the 50 MoUs announced during the Global Investors’ Meet were in different stages of implementation. “The seven non-starters have suffered financial and global economic scenario impacts on their business grounding their projects for now,” said the official.

Vinod Surana, Assocham, Co-Chairman (TN), says while this will lay the ground for re-invigorating the economic activity of the region, the mega infrastructure for R&D, Design and Testing, Documentation and Quality, among other things, should be created. Unlike a car which can be bought for a few lakhs and crores, the scale of aerospace and Defence sector is humongous, running into thousands and thousands of crores.

“We are optimistic that this park will help boost the economy. The auto industry led to the manufacturing growth story, sustaining the momentum for several decades and now for the next 50 to 60 years, we are hopeful that the aero industry will do the same. The repeat orders for aircraft upgrades, maintenance and repair outsourcing will push growth,” Surana said, striking a word of caution that this industry, did not require major investments as far as land is concerned.

A key architect, instrumental in building a case for aerospace and defence sector development in this part of the country, Surana said it is the ability of the corridor to capitalise on the opportunity besides being able to attract diverse hi-tech players (battery and sensor manufacturers, material science specialists) that will determine the progress in the future.