The Federation of Indian Chambers of Commerce and Industry – Tamil Nadu State Council (FICCI-TNSC) has urged the State government to come out with suitable policy to expedite the creation of aerospace cluster that was announced in March this year.

In its proposal submitted to the government, the FICCI-TNSC suggested four places – Chennai, Sriperumbudur, Hosur and Tiruchi – for creation of aero clusters due to its unique inherent eco-system built over the years.

Chennai has been chosen for having a large number of IT and ITES companies. Besides, several leading scientific institutions – IIT-Madras, IIT Madras Research Park, Anna University, DRDO and CSIR labs – are located in the city.

Sriperumbudur could house MRO (maintenance, repair and overhaul) facilities, sub-system assembly and aerospace university. Hosur can leverage its proximity to Bangalore to get the help of academicians, trained manpower and IT firms while the presence of BHEL in Tiruchi would be a major advantage.

Mentioning that other States – Karnataka, Maharashtra and Andhra Pradesh – had initiated industry policies in aerospace sectors by making significant investment, the FICCI-TNSC said it was time Tamil Nadu replicated its growth model of automotive industry into the aerospace sector as it had the necessary eco-system and synergy in place to make it happen.

The State council called for concerted action that would lead to identification of suitable land bank in all these places; building a modern airport near Sriperumbudur; setting up a liaison office in Hosur to facilitate easy interactions with Bangalore-based scientific and industry ecosystem.

It wanted the government to provide 75 to 100 per cent stamp duty exemption on land sale deed and loan documents registration; 100 per cent exemption on entry tax on plant and machineries for three years during the implementation of the project and 100 per cent five year exemption on entry tax on raw materials, inputs and components during the operating period.

Talking to The Hindu, the convener of FICCI-TNSC manufacturing panel, Asit K. Barma said “We have seen the growth of leather, textiles, automotive and auto component manufacturers through different clusters. In the case of aerospace cluster, maximum outsourcing opportunities lie in R&D, engineering, manufacturing and assembly/testing areas.”

“The State government should appoint a consultant of international repute to prepare the blue print. Besides, it should create a task force comprising of domain experts, academicians, industry bodies and government representatives to support it,” Mr. Barma added.

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