Bengaluru: Large and Medium Industries Minister Murugesh Nirani has said that Karnataka will have a new Aerospace and Defence policy by this year end.
Making a strong pitch for investments in the sector, he said the government is planning to offer enhanced incentives to MSMEs to provide a level playing field and make them competitive as part of the new Aerospace and Defence policy.
Though Karnataka's Aerospace and Defence policy is valid until 2023, the state government is pushing for an updated policy.
The new policy will be introduced as part of the government's “proactive approach to update our policy to provide a key push for this important sector," Nirani was quoted as saying by his office, at the Lockheed Martin's 8th Annual India Suppliers Conference late on Wednesday.
He also said that the government is also in the process of setting up a 1,200-acre Defence and Aerospace park in Devanahalli, which may also be officially announced at the end of December.
The new policy would concentrate on drawing original equipment manufacturers (OEM) to the state and the government is looking to create clusters not only in Bengaluru but other parts of the state like Tumkuru, where the helicopter complex under Hindustan Aeronautics Limited (HAL) is coming up, Chamarajnagar and even Chitradurga which is turning into an important hub for units of the Defence Research and Development Organisation (DRDO).
Noting that Karnataka is already leading the realm when it comes to a strong industrial base, Nirani said, “Our Gross State Domestic Product (GSDP) is approximately Rs 17 lakh crore and accounts for the highest total exports among all states in India."
Elaborating further on Karnataka's predominant position in the Defence and Aerospace sector, the minister said 25 per cent of India's aircraft and spacecraft industry is based in Karnataka.
“More than 67 per cent of all Aircraft and Helicopters production for Defence services is done in Karnataka and it contributes to 65 per cent of the country's aerospace related exports. We are home to more than 2000 Small & micro enterprises along with 70 per cent of India's supplier base which execute subcontracting work for the Defence PSUs," he added.
PTI
