Lepakshi Knowledge Hub Private Limited (LKHPL), which is developing a 2,000-acre defence and aerospace manufacturing park in Anantapur district close to Bangalore, is looking for collaboration with UK-based companies to develop aircraft testing, training and MRO facilities along with a 3.4-km long runway to support the upcoming aerospace industry in the park.
LKHPL has already tied up with Cranfield University, UK, for providing academic and research support to the proposed park.
The company has proposed a special purpose vehicle (SPV) to develop these facilities involving huge investments in collaboration with a consortium of leading European companies. “We are in discussions with some UK-based companies, including an airport operator, for collaboration in this regard,” S Balaji, managing director of the company, told Business Standard. The park is a part of the 10,000-acre multi product knowledge-based industrial park being developed by the company.
Claimed to be the first company to develop a defence & aerospace industrial cluster with a dedicated runway, Lepakshi Hub has already attracted public sector Bharat Dynamics Limited (BDL), Electronic Corporation of India Limited (ECIL), Bharat Electronic Limited (BEL) and Hindustan Aeronautics Limited (HAL) to set up their operations in the park.
Besides, it is in talks with a few private players including Mahindra, L&T and Rajshree Shipyard who are looking at setting up joint venture projects in view of growing business opportunities thrown open by the Centre’s offset policy.
“We received good enquires during the recent airshow in Bangalore,” he said. Building missiles, helicopters, manufacturing of fighter jet aircraft components, runway-based testing and training and MRO are to be the main of operations in the park.
PSUs projects
BDL is setting up a missile building facility in collaboration with a French company on 600 acres while ECIL and BEL together have taken 700 acres to set up a manufacturing unit for radar systems among other products. The three public sector entities are expected to invest about Rs 1,250 crore. “The offset policy provides immense business opportunities for Indian companies. Discussion are on with regard to raising the value of contract to be sourced domestically by a foreign supplier to 49 per cent from the present 30 per cent under this,” Balaji said.
The Bangalore advantage
The company was hoping to gain from the strong presence of the aerospace industry and technical manpower in Bangalore city, which is just 69 km from the site. “We will be providing all the facilities at one place, including plug and play, for the units. Also, the price of land here is much cheaper compared with the aerospace park at Bangalore International airport,” he said.
The company is planning to build social infrastructure like schools and residential complexes, including worker dormitories, on the lines of Chinese industrial clusters in the next 18 months.
The park developer would invest Rs 900 crore in Phase 1, including Rs 250 crore in defence and aerospace park, towards developing the basic infrastructure.
