Defence Minister launches India’s second defence industrial corridor
Defence Minister Nirmala Sitharaman has inaugurated the Tamil Nadu Defence Industrial Corridor from Tiruchirappalli, taking a major step forward to boost indigenous production of defence equipment. The corridor is the second defence corridor being set up by the government to support various defence manufacturing units.
Union Defence Minister Nirmala Sitharaman on January 20, 2019 inaugurated the Tamil Nadu Defence Industrial Corridor from Tiruchirappalli, taking a major step forward to boost indigenous production of defence equipment.
The TN Defence Industrial Corridor is a mega corridor, which will link leading military manufacturing units in five cities of South India, including Chennai, Hosur, Coimbatore, Salem and Tiruchirappalli. The project will require an investment worth Rs 3,000 crore.
• The corridor is the second defence corridor being set up by the government to support various defence manufacturing units. The first one is being established in Uttar Pradesh.
• Investments worth around Rs 3,038 crore were announced for this defence corridor during its inauguration itself.
• A majority of the investments will come from public sector undertakings (PSUs) as Ordnance Factory Board, Bharat Electronics Limited and Bharat Dynamics Limited have committed to invest Rs 2305 crore, Rs 140.5 crore and Rs 150 crore respectively.
• Besides, private companies such as TVS, Data Patterns and Alpha Designs have also committed to make investments worth Rs 50 crore, Rs 75 crore and Rs 100 crore respectively.
• Lockheed Martin, one of the global security giants, has also announced its intention to invest in the corridor.
The corridor is also referred to as the Tamil Nadu Defence Production Quad as the nodal cities form a quadrilateral with one of them at the centre.
The development of the defence corridor will help facilitate a well-planned and efficient industrial base that will lead to an increased defence production in the country.
The key aim behind setting up defence industrial corridors is to ensure connectivity among various defence industrial units.
The five nodal cities have existing defence ecosystem in the form of ordnance factory boards, vendors working with defence PSUs and other allied industries.
The Union Finance Minister, Arun Jaitley, in his Budget speech on February 2, 2018, had announced that two defence industrial production corridors will be set up in the country to promote domestic industry base.
The government had envisaged building corridors in Uttar Pradesh and Tamil Nadu.
The Uttar Pradesh Defence Industrial Corridor was launched at Aligarh on August 11, 2018 with announced investments worth Rs 3,732 crore.