The first ever special economic zone (SEZ) dedicated to aerospace and precision engineering is taking shape in Andhra Pradesh.
To locate their defence and aviation activity on 50 acres there
HYDERABAD: The first ever special economic zone (SEZ) dedicated to aerospace and precision engineering is taking shape in Andhra Pradesh. It would be located near the international airport on the outskirts of Hyderabad, spread over 300 acres.
Interestingly, as if to compensate the state for the loss of the Nano project, Tatas have confirmed that they would be the anchor client and get a co-developer to the project.
B P Acharya, managing director of Andhra Pradesh Industrial Infrastructure
Corporation (APIIC), the nodal agency for development of infrastructure in the state said, “Tatas have confirmed that they would set up their hi-tech engineering project at the new SEZ located at Adibhatla village on the city outskirts and we are all set to take off.”
In a letter to the state government, the Tatas said they would locate their newly formed defence and aviation activity in Hyderabad. “It would be the centre part of the largest new high-tech activity the Tata group is entering,” the letter said.
APIIC has already allotted 50 acres to Tata Advance Systems, which would set up the project with an outlay of Rs 500 crore.
“The SEZ would exclusively focus on aerospace and precision engineering including design and development for aerospace companies, civil, defence aircraft component manufacturing and training,” Acharya told DNA Money. The government was working on developing a hardware park near Adibhatla and the much-hyped Fab City too is in the same area, he pointed out.
Apart from Tatas, a group of about 35 companies under the aegis of Samuha Engineering Industries has been allotted over 200 acres for setting up various units. The 35 companies, mostly based out of Hyderabad, have been supplying equipment and services to defence establishments in the country.
P Ravindra Reddy, chairman of Samuha, said, “We are not new to the industry. Currently, we are all spread out in and around Hyderabad. By moving to the SEZ, we will all be working together and focus on certain specific sectors.” These companies have traditionally been working with defence arms such as the Defence Research and Development Organisation for component design, manufacture and services.
The investment in the SEZ is expected to be about Rs 4,000 crore and provide employment to over 10,000 skilled and semi-skilled professionals. “We are ready to start. We have already put things together,” Acharya said.
The project implementation is being supervised by noted aerospace scientist Dr K Harinarayana.
The SEZ would also attract a maintenance, repair and overhaul facility subsequently. However, the focus would mostly be on precision component fabrication, airframe components, engine components, mechanical, electrical and electronic components. Avionics systems repair is expected to be the key attraction.
ramanadna@gmail.com 
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