First major investment by Tata group in the sector in city

TASL seeks 50-acre plot for manufacturing unit

Works to begin in first week of August

HYDERABAD: The government’s plans to project the city as an aviation hub received a major boost with the Tata Advanced Systems Ltd (TASL), promising huge investments in the aerospace sector.

The Tata group company has decided to set up its first facility in aerospace engineering at Adibhatla in Ibrahimpatnam mandal, in Ranga Reddy district, where the government recently notified a 250-acre Special Economic Zone dealing with the aerospace and precision engineering industry. TASL, which has tie-ups with aircraft majors like Boeing, sought a 50-acre plot exclusively for setting up a manufacturing facility with an investment of US $2 billion (about Rs. 8,000 crore).

Pioneering move

This is the first major investment by the Tata group in the aerospace sector in the State. Works are likely to start immediately after the gazette notification of SEZ is issued by the first week of August. TASL will be the anchor client of SEZ.

It will collaborate with other companies, which have tie-ups with the defence establishment.

According to Industries Department officials, the Tata group selected Hyderabad for setting up its facility as an SEZ as it was already notified and land was readily available.

It had a bitter experience in Singur (West Bengal) and chose Hyderabad where the process for setting up the facility was hassle-free, they said.

The group is in active collaboration with DLRL, DRDL and BHEL. It can leverage the collaboration further with the new facility.

Opening of the defence establishment for private collaboration and the offset clause mandates procurement of at least 30 per cent of products from local/domestic industries.

B. Sam Bob, Principal Secretary, Industries, told The Hindu that TASL, AP Industrial Infrastructure Corporation and Samoha, a cluster of industries like MTAR Technologies, Zetatek Industries Ltd and other aerospace companies, would be co-developers of the SEZ.