DefExpo 2020: Need to accelerate infra build-up
During the Expo, over 200 MoUs were signed, 23 exclusively for UP defence corridor. According to the State government, the Defence corridor is being developed to promote indigenisation in the domain of equipment meant for defence services and to support the `Make in India` initiative towards fulfilling equipment requirements worth over $ 250 billion by 2025. The 23 proposed projects are likely to bring Rs 50,000 crore investment in the state. UP chief minister Yogi Adityanath rightly commented that even if 50% of the MoUs signed materialised, it would lead to creation of over 2.5 lakh jobs in the state. He assured the prospective investors that their investments would be secure and claimed that the state investment policy was “the most attractive in the country”. It was announced that the companies planning to invest in the defence corridor would be given 50% discount on purchase of land for setting up their units.
One of the immediate outcomes is that the HAL would be supplying Dornier, a 19-seater civilian aircraft built at its Kanpur facility to improve the connectivity within the state which will help boost tourism in the state. It needs to be noted that the biggest investment has come from an eight-year-old Hyderabad-based start-up; Titan Aviation and Aerospace Limited.
The company, in collaboration with multiple Ukranian companies and a US partner, has proposed Rs 38,000 crore project in Jhansi.
During the event, the Defence Research and Development Organisation (DRDO) signed a technological partnership agreement with the UP government. As per some of the provisions of this agreement, skill training would be imparted, hand-holding of new industries in their formative stage will be provided and guidance will be given in all aspects related to the technology infusion and its absorption. G Sateesh Reddy, secretary and the chairman of the DRDO further announced that the DRDO would set up a research and development centre in Uttar Pradesh which would act as a catalyst to push military industrial complex development.
In a ceremony titled ‘Bandhan’, over 200 partnerships including transfer of technology were inked.
Defence minister Rajnath Singh, who presided over the signing ceremony, described the signing of MoUs as a step in the direction to achieve Prime Minister’s $5 billion defence exports target in next 5 years. It was aimed at forging and renewing partnerships for innovative collaboration, and transformation of the Defence manufacturing in the country. He hoped the state would in due course of time become a major defence manufacturing hub in the country. It was also highlighted that the state had been working diligently to further the vision of the Central as well as the state government.
There were many firsts at the Expo, according to defence secretary Dr Ajay Kumar, including the signing of the largest number of MoUs, 13 product launches, 124 MoUs between DPSUs, private and global defence manufacturing companies. The event helped to convey to the prospective vendors that the state was serious to attract them to invest in Uttar Pradesh.
However, it needs to be noted that the real work for the state government in conjunction with the Government of India, FICCI, ASSOCHAM, CII and PHD Chamber of Commerce needs to be taken forward in a time bound manner.
Four areas need to be addressed on priority. First: to build capacity across the board to provide skilled manpower to meet the challenges of Industry-better coordination between academia and industry will be the way ahead.
Second: the need to accelerate the infrastructure build-up in terms of roads, air fields (Jewar and other smaller feeder airfields), faster road network, improved railway connectivity, better and continuous power, water supply and enhanced & faster digital connectivity. Third: improved framework for faster sanctions, empowerment of connected officials and better coordination of all stakeholders. Finally, for sustained growth of the industry a strong research and development network will have to be established.
The recommended strategy will be that it should be driven by the industry rather than academia and user interface for its success will be the key.
Without an iota of doubt it is a great initiative which needs to be progressed through a process of comprehensive planning to meet not only the current challenges but also of the future in a time bound manner with accountability and responsibilities of all stake holders fully fixed and monitoring of progress at the highest level part of the system. (VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL)