Aerospace and Defence – Invest Telangana

DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA

AEROSPACE & DEFENCE

Hyderabad has been ranked Number One in the Aerospace Cities of the Future
2020-21 ranking

Best State Award in
Aviation and
Aerospace

Large companies
in the
A&D Ecosystem

0 +

MSME's
in the
A&D Ecosystem

0 %

of parts for
Mars Orbital Satellite Mission

Praveen P.A.
Director,
Aerospace & Defense

Industry outlook, Opportunity in Telangana

India

AVIATION: India is now the 3rd largest- and fastest growing- aviation market in terms of domestic tickets sold. India has 91 international carriers comprising of 5 Indian carriers and 86 foreign carriers, which ensure that India is well connected with most major countries. Revenue passenger kilometre (RPK) in domestic airline demand growth of 18.6% in 2018 was three times the global RPK growth of 6.5%.

DEFENCE: India plans to spend $130 bn on military modernization in the next 5 years, as achieving self- reliance in defence production is a key target for the Government of India. The Government has opened up the Defence industry for private sector participation to provide impetus to indigenous manufacturing. The opening up of the industry also paves the way for foreign original equipment manufacturers to enter into strategic partnerships with Indian companies. Annual Turnover by Private sector in Defence and Aerospace sector in 2018-19 is $2.4 bn.

Telangana

Key Value Propositions of Telangana:

Multiple Aerospace parks within/near urban living centres
Unmatched value proposition- Superior Infrastructure at low Cost
Abundant availability of Skilled Manpower
Strong Defence cluster with established A&D Supply chain
Strong innovation quotient(see Telangana innovation ecosystem) and research-industry nexus( Hyderabad has historically been a home to a large number of defence aero-space and defence research laboratories like DRDO, DRDL, RCI, BDL, MDN, Ordnance Factory, DMRL etc. as well as having a mature Defence manufacturing ecosystem with over a dozen major DRDO labs and Defence PSU establishments.)
Attractive State Industrial Policy and package of incentives
A rich cache of institutions that train personnel required for this sector.
Home to one of the best IT/ITeS talent pools in the country leading to potential synergies.

We also have a strong private sector industry with over 25 large companies and over 1,000 MSMEs in aerospace and defence sector. Aerospace and defense ecosystem in Telangana has witnessed unprecedented growth in the past five years. In a short span of time since the formation of the state, Telangana has been able to attract large investments from US OEMs such as Lockheed Martin, Boeing, GE Aviation, Pratt and Whitney, Honeywell, Collins Aerospace etc.

Precision Engineering: There are over 1000 MSME units in precision engineering sector in Telangana

MAJOR INVESTMENTS

Government Support

The single window system under TSiPASS ensures all industrial approvals online within 15 days based on self certification.
Land allocation process in our various Aerospace parks is online, transparent and swift.
Any project with more than 200 Cr investment, or create an employment of 1000 or that is strategic for the State falls under mega project criteria.
Mega projects are eligible for customised tailor made policies which has encouraged most Aerospace and Defence OEMS to establish themselves in Telangana.
We also support skilling the initial manpower required for new strategic investments and have skilling partnerships with major US, UK and French Universities.

Availability of abundant supply of highly skilled and industry ready workforce has been a significant differentiator for Hyderabad.
To make world class skilling accessible at affordable rates, the State Government has partnered with global institutions such as Embry Riddle Aeronautical University (US), Cranfield University (UK) and Aerocampus Aquitaine (France) to offer need based Aerospace and Defence certification courses in Hyderabad at relatively affordable rates.
Training support for new industries is also provided through State run skilling agency – Telangana Academy of Skill and Knowledge (TASK).
The Government is also planning to establish a world class Aerospace University in Telangana shortly.

Aerospace Parks

We have 4 dedicated Aerospace parks, 2 hardware parks and 50 general engineering parks which are provided with high-quality infrastructure for precision engineering industry.

Adibatla Aerospace SEZ
Nadergul Aerospace park
GMR Aerospace SEZ
ADANI AEROSPACE PARK.
HW PARK 1
HW PARK 2.

A large number of Aerospace and Defence firms are also operating from the various Electronics Manufacturing Clusters, Hardware parks, Technology parks and SEZs catering to A&D sector.

We are creating two more Aerospace and Defence parks to meet the increasing demand.

Airports in Telangana: A Snapshot

RGIA – Shamshabad

OWNERSHIP: 74% private shareholding In RGI Airport (Hyderabad) – Owned majorly by GMR (63 percent), Malaysia Airports Holdings Berhad (11 percent); rest of the shares owned by Government of India (13 percent) and Government of Telangana (13 percent).

Passenger traffic handled in Hyderabad in: (Source:AAI)

FY 16: 12.39 million
FY 17: 15.10 million
FY 18: 18.16 million
FY 19: 21.40 million
FY 20*: 18.80 million

AAI has commissioned an aeronautical survey for setting up 6 new airports in Telangana in addition to the existing RGIA.They comprise of 3 greenfield ( Jakaranpally in Nizamabad District, Addakal Mandal in Mahbubnagar District and one in Bhadadri Kothagudem) and 3 brownfield airport (Warangal, Adilabad District and Basanth Nagar in Pedapalli District)

Aviation:

Up to 100% FDI is permitted in Non-scheduled air transport services under the automatic route.
Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.
Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying training institutes; and technical training institutes under the automatic route.
Up to 100% FDI is permitted in Ground Handling Services subject to sectoral regulations & security clearance under the automatic route.

Defence:

100% FDI is allowed in Defence industry; wherein 49% is allowed under automatic route and beyond 49% through Government route.

The Government of Telangana has established several noval institutions to support innovation and start up ecosystem catering to major sectors including Aerospace and Defence.
T-Hub, India’s largest technology incubator is a State government initiative.
- Thub has partnered with leading leading US OEMs such as Boeing, Pratt and Whitney, Collins Aerospace etc to promote and accelerate startups in the Aerospace and Defence domain.
- Boeing Horizon X and Boing Build programmes were hosted in Thub.
Government of Telangana is also coming up with T-Works, India’s largest prototyping centre for
electronics, electromechanical and mechanical start-ups. With cutting edge infrastructure, and
spread over 250,000 sft, T-Works can facilitate more home-grown Aerospace and Defence hardware
startups.
State Government has launched Research and Innovation Circle of Hyderabad (RICH) for bringing research work from top scientific research institutions to market. Aerospace and Defence is a focus sector for RICH.
Various Centre of excellences in Aerospace and Defence are also coming up in the State in partnership with industry.
Thus, when it comes to Aerospace and Defence, there is no better ecosystem in India than Telangana.

Industry Speaks

GMR Aerospace & Industrial Park, Hyderabad

The progressive policies of the Government of Telangana has enabled Boeing to take forward its commitment of creating a robust aerospace and defence ecosystem in India. The state-of-the-art Tata Boeing Aerospace Limited (TBAL) facility in Hyderabad is an example of Boeing’s strategic focus on ‘Make in India.’ TBAL produces aero-structures for Boeing’s Apache helicopter, including fuselages, secondary structures and vertical spar boxes for the world. Skilled talent, robust infrastructure, ease of doing business and a highly responsive government administration makes Telangana an ideal destination for the high-end manufacturing work that the aerospace and defence industry demands.

Salil Gupte

President, Boeing

“The Government of Telangana has put in place very dynamic policies allowing Safran to continuously progress in the development of its footprint in India. This outstanding environment has been a great support to Safran when creating its harnesses facility in Hyderabad which is now fully operational. This has also been fully supported by the availability of highly skilled resources which are key for the longstanding success of such a project. This support from Telangana Government will greatly contribute in getting foreign OEMs’ participation to meet the Indian objective of setting up a complete aeronautic ecosystem and of creating numerous skilled jobs.”

Pierre Dickeli

CEO , Safran India

“Telangana provides an ideal ecosystem with representation from private industry, public sector units and research labs along with a significant layer of MSMEs in the State. The support, infrastructure and policies put in place by the Government of Telangana are progressive and commendable. At Lockheed Martin we are extremely pleased and proud of our established footprint in the State that spans over a decade. We have two state-of-the-art joint ventures with Tata Advanced Systems Ltd. in Hyderabad producing C-130J empennages and aerospace components for commercial helicopters and aircraft for the past decade. This has been a catalyst for the growth of the defense and aerospace ecosystem with Tier 1/2/3 suppliers directly supporting the focus on self-reliance to meet India’s defense requirements and support economic growth with exports. The industrial environment prevailing in Telangana provides opportunities to advance indigenous manufacturing, contributing to the country’s society and economy.”

William L Blair

Vice President and Chief Executive, Lockheed Martin India

Partner Organizations

Aerocampus Aquitaine, France
Embry Riddle University, USA
Cranfield University, UK
- Global Aerospace curriculum offered in Hyderabad at significantly lower price point.
NSDC: Partnership for Aerospace skilling.
FICCI, CII, SIDM, ASSOCHAM, USIBC, IFCCI, UKIBC, TACCMA, ICC, PHD CHAMBERS

Enabling Factors

Home To Several Reputed Aviation Academies

Telangana State Academy of Aviation
Rajiv Gandhi Aviation Academy
GMR Aviation Academy
Flytech Aviation Academy Asia Pacific Flight Training Academy
Asia Pacific Flight Training Academy

Industry Promoted Training Institutions

UTC/Pratt and Whitney Engine Training Centre
- Only such facility in India, 3 rd in the world
CFM (GE+ SAFRAN) Engine Training Centre
- Only such facility in India
FSTC Flight simulator-training center
TASL Centre of Excellence and Advanced Craftsmanship Centre (ACC)

Strong A&D Supply Chain And Vendor Base

Hyderabad has > 1000 MSMEs in precision engineering industry.
Groomed by defence PSUs: Familiar in military/aerospace grade manufacturing.
Several SME have now become part of the global aerospace/defence supply chains servicing Global OMEs.
Vibrant start-up ecosystem: Ready to provide innovative solutions.

In The News

Queries

Got questions on Policy Suggestions & Clarifications, Unsolicited Proposal Submissions, Grievance Collections

Click on the button below and share your queries with us!

Investing in us?

Please get in touch with us by sharing your details and our team will reach out to assist you with the same.

Click on the button below!

Downloads

Address:

INVEST TELANGANA CELL,
Industries and Commerce Department,
3rd Floor, Dr. B.R. Ambedkar Telangana Secretariat Rd, Central Secretariat, Khairtabad, Hyderabad, Telangana 500022

Should you have any questions, or wish to speak to our Qualified Financial Advisors at Telangana, Please Contact Us.

Why one should invest in Telangana?