India woos investors in Defence manufacturing as Aero India begins

 

BENGALURU, Feb 20: India Wednesday wooed investors
to capitalise on the ecosystem prevailing in the aero space
and other sectors and pitched for joint venture partnerships,
saying it offered a big market in Defence manufacturing.

Defence Minister Nirmala Sitharaman made the pitch for

investment seeking to give a big push for the ‘Make in India’

initiative at Asia’s premier air show which began at the

Yelahanka air base, north of Bengaluru.

Eyeing India’s multi-billion dollar market, global

defence majors are showcasing technologies and products

including helicopters, fighter jets and transport aircraft at

the five-day mega event.

The event began on a sombre note, a day after two

aircraft of Surya Kiran, Indian Air Force (IAF)’s aerobatics

team, collided mid-air, killing a pilot and injuring two

others who ejected to safety.

Also at the air show extravaganza, American Defence

giant Lockheed Martin unveiled the F-21 multi-role fighter jet

for India, to be produced locally, as it eyed a multi-billion

dollar military order.

“Hundred per cent FDI is possible now in the defence

sector, so I invite all investors to consider to capitalise on

the ecosystem which prevails for Aerospace and other segments

which can help manufacturing in India,” Sitharaman said in

her inaugural remarks.

Noting that India has manufactured till date more than

4,000 aircraft, she said there was a “great possibility” for

the Original Equipment Manufactuters (OEM)s from abroad to

come and find joint venture partners.

She said the OEMs have a “captive market” and they could

scale up production, besides making exports from India.

India also had a robust supply chain with 10,000 micro,

small and medium entrepreneurs who make 80 per cent of the

components, aggregates and assemblies of complex weapon system

and aircraft, she said.

She said between 2014-15 and October 2018, as many as

150 contracts worth about Rs 1,27,500 crore had been signed

with Indian vendors for procurement of defence equipment for

armed forces.

Also in the same period, Sitharaman said the government

has recorded acceptance of necessity for 164 proposals worth

Rs 2,79,650 crore under various categories of capital

procurement including Make in India and Buy Indian.

“This means the request for proposal are issued to the

Indian vendors,” she said.

The defence ministry is ensuring that procurement orders

are given to Indian vendors, she added.

Sitharaman said the value of production in respect of

the Ordnance Factory Boards and also the defence public sector

undertakings have grown from Rs 43,746 crore in 2013-14 to

58,163 crore in 2017-18, out of which 40 per cent of

production is outsourced to the private sector.

She also said the orders given to Ordnance Factory is

definitely a support given to government-run institution, but

not at the cost of private sector.

“The private sector does get quite a lot of these

outsourced from Ordnance Factory Boards and therefore there is

a happy blending on both the private sector and the public

sector under Make in India norms,” Sitharaman said.

The defence minister also cited some of the policy

initiatives that included 100 per cent FDI in the defence

manufacturing, defence offset policy-2016 and delicensing of

defence items, to attract investment.

A breathtaking display of manoeuvres by military

aircraft besides aerobatic teams cast a spell at the 12th

edition of Aero India.

The Bengaluru skies dazzled with somersaults and

stunts by metal birds.

Manoeuvres by Rafale combat aircraft,the deal on which

has created a political firestorm in India, was a showstopper.

The Rafale aircraft flew at low speed to pay tribute

to Wing Commander Sahil Gandhi who died in a mid-air collision

between two aircraft of IAF’s aerobatics team ‘Surya Kiran”

during rehearsal on Tuesday.

Three IAF aircraft, with a Su-30MKi in lead, also flew

in the missing man formation as an aerial salute to Gandhi.

Unveiling F-21, Lockheed Martin said it was

specifically configured for the IAF and provides “unmatched”

Make in India opportunities and strengthens India’s path to an

advanced airpower future.

Lockheed Martin and Tata Advanced Systems would produce

the F-21 in India, for India, it said in a statement.

The US Defence major, which had earlier offered its

F-16 fighter to India, said the F-21 addresses the IAF’s

unique requirements and integrates India into the world’s

largest fighter aircraft ecosystem.

The biennial event, which would showcase India’s air

defence prowess, would also act as a platform for aviation

companies, the defence sector and government to forge new

alliances and contracts.

The current edition of Aero India was marked by

controversy with reports about it being shifted to Uttar

Pradesh, which had taken a political colour, as the

Congress-JD(S)led government in the state had hit out at the

BJP-led central government against the alleged move.

Besides the Tejas, the HTT-40 (Basic Trainer Aircraft),

first indigenously upgraded Hawk Mk132- named as Hawk-i, Civil

Do-228, Advanced Light Helicopter (Rudra), Light Utility

Helicopter (LUH),Light Combat Helicopter (LCH) are scheduled

to fly in the air show.

Also, aerobatic teams like India’s Sarang (ALH-Dhruv)

and UK-based Yakovlevs are expected to enthrall the audience.

On static display would be HAL’s Light Utility

Helicopter (PT-1), Light Combat Helicopter (TD-2), Advanced

Light Helicopter (Rudra) and ALH MICU (Medical Intensive

CareUnit).

The Sukhoi SU-30, Rafale, F-16 Fighting Falcon, F/A-18

Super Hornet and the mighty B-52 Stratofortress bomber would

be part of the air show.

The Aero India official website said 61 aircraft would

be on display and 403 exhibitors would be part of the show.

CEO’s round table, drone Olympics, startup manthan and

women’s day (to celebrate women achievers) are some of the

highlights of Aero India-2019. (PTI)

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