SME Times News Bureau | 28 May, 2015
After setting up units in India for wings, doors and beams
for aircraft, a host of global aviation giants are pursuing facilities in the
country to serve an industry, seen needing 1,400 new aircraft by 2020, says
Civil Aviation Minister Ashok Gajapathi Raju.
In an exclusive interview to IANS at his office at Rajiv Gandhi Bhawan, just a
stone's throw from the majestic Safdarjung's Tomb in central Delhi, Raju said a
host of global manufacturers regard India as their next major hub and market
for both defence and commercial sector aviation.
"Pratt and Whitney is one of the companies. They are very much interested
in setting-up shop here in the coming time,” Raju said. "We have met them
several times to discuss their proposal. Things are at an advance stage."
Pratt and Whitney is an arm of the US-based United Technologies, providing
design, manufacturing and services for aircraft engines, space propulsion
systems and industrial gas turbines. Pratt & Whitney engines made their
debut in the country in 1960, powering flag carrier Air India's Boeing 707-437
aircraft.
Raju sees India emerging as a hot spot for aviation and allied industries,
moving beyond the two big players in the aircrafr manufacruring space, Boeing
and Airbus, that were operating in a host of areas, including sourcing of some
key components from their joint ventures here.
"This is not just as an offsets option in defence deals, or to satisfy the
purchase clauses, but also for making our country among their global hubs for
manufacturing and sourcing," the minister said, adding "Make in
India" campaign, with ease of doing business, was being viewed seriously.
He said added emphasis was being laid on the synergies between defence and
civil aviation sector.
"The defence offsets in the new procurement guidelines can also be used in
civil aviation sector. This has the potential to give a major boost to this
sector in the country. We are looking at it and will take it forward," the
minister said.
Offsets is the amount a global company has to invest in India as a percentage
of the order value it gets from the government and its agencies, notably in the
defence space. The offsets from the Indian Air Force alone, for commercial
aviation, is seen as a Rs.20,000-crore potential.
Raju said talks were als on with the finance ministry to incentivise
manufacturing in India.
"We have the youth. We want employment and skilling to be done here.
Companies that are willing to bring both, or at least some part of their
manufacturing here, will be fully supported and facilitated. This is our
government's policy," the minister said.
"The global industry also sees some major plus points in India. We offer
cost advantages ranging between 15-25 percent in manufacturing, depending on
the type of business. Indian industry, our people, are capable enough to
undertake complex manufacturing."
He also added the age-old problem of certification and quality assurance of the
products made in India wasn't a hindrance. "We have regular and rigorous
quality checks. The DGCA (Directorate General of Civil Aviation) is quite
capable and in checks and certification," Raju added.