A Centre of Excellence in smart manufacturing is proposed to be established in defence and aerospace sectors in Telangana, Niti Aayog member and former Scientific Advisor to Defence Minister V.K. Saraswat said here on Monday.
Talking to reporters after delivering the keynote address at the second Defence & Aero supply - India conference, he said a detailed project report of the proposed centre was under preparation. Its objective would be to develop new processes for various applications and such centres were proposed to be set up in different parts of the country. A machine tool centre in smart manufacturing was also planned to be established at IIT, Chennai.
Dr. Saraswat said there was a huge potential for investments in the Defence and Aerospace sectors in the country and projects with $150 billion worth of investments were expected over the next decade.
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At least $30 billion to $ 60 billion of those projects would be eligible to take up production in India under the offset policy. He said basically manufacturing of components of the original equipment manufacturer, transfer of technology, repair and maintenance collaboration would be part of offset.
He said aircraft manufacturers were willing to come to India to set up MRO facilities if “disability factors” like huge VAT and taxation on spare parts were addressed. India was emerging as one of the fastest aerospace markets and there was potential for projects worth $ 2.6 billion in MRO segment.
He said if the “disability factors” were addressed and with the ease of doing business, investments in defence sector were expected to increase considerably. Defence manufacturing alone would attract at least $ 80 billion in investments. Aero-structures and development of new missiles were important areas which could see joint ventures, he added.
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Referring to ‘Make in India’ programme, he said Prime Minister Narendra Modi has clarified that it was basically design and manufacture in India.