AERO INDIA 2021 - ADVANTAGE KARNATAKA Magazine special issue

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Advantage www.advantagekarnataka.in | February - March | 2021 | Vol 7 | Issue 1

Industrial Policy 2020-25 A Clarion Call for Futuristic

Karnataka

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EDITORIAL NIP Takes Karnataka a Step Closer to Industry 4.0

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ooing domestic and foreign investors to make remunerative capital investments in Karnataka and setting the ground ready for creation of two million employments, the state government unveiled the New Industrial Policy 2020-25. Besides, giving a tremendous boost to the critical growth enablers such as thriving ecosystem, highly skilled workforce and robust infrastructure, the policy indisputably raises Karnataka’s manufacturing prowess by ideally placing the state to race towards securing a prime spot on the global value chain map.

The policy envisages a comprehensive and inclusive growth in all sectors to place Karnataka in the forefront of India’s international trade. The plans to strengthen export infrastructure and logistics and increase participation in international trade fairs are appraisable. The zone-wise division of the state to ensure development in industriallybackward areas and the decision to look beyond Bengaluru were longstanding visions and the policy seems to walk the talk.

Realizing the roles of MSME and startups as the backbone of the economy, the policy envisages production turnover-based subsidies for micro, small, and medium-sized enterprises (MSMEs) to give a fillip to industrial innovation.

The sector-specific and cluster-specific growth strategies are anew and promising the fulfillment of the long-term vision of Futuristic Karnataka.

The focus given on aerospace and defence sector to position Karnataka as the most vibrant aerospace hub in Asia and a globally-recognized aerospace destination will give a major fillip to companies rooted in the state.

The government’s ambitious program for industrial reforms in partnership with departments and various stakeholders makes it easier, simpler and quicker for businesses to start and operate in the state. While the policy takes Karnataka one step closer to achieving Industry 4.0 by setting the ground ready, the challenges involved need be resolved giving deserving priority.

The availability of land in industrial parks and SEZs is one major challenge. The concept of Single Window Clearance System should fulfill its purpose and Ease of Doing Business must be visible in all services by the government. If the policy announcements manifests as projects and schemes, Karnataka could emerge as a global industry leader in priority sectors such as Advanced Manufacturing, Research & Development, and Innovation.

Email : editor@advantagekarnataka.in Tel : +91 9449061925 / 080 43747492 Email : info@advantagekarnataka.in Tel : + 91 94805 51925 www. advantagekarnataka.in

Edited, Printed & Published by Sunny Jerome, Managing Editor, ADVANTAGE KARNATAKA,Aerosun Media Pvt. Ltd., B-2, SAPPHIRE, 1st, Block, 3rd Cross, Prakruthi Township, Babusapalya, Kalyan Nagar, Bangalore - 560113.

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Content

08 Karnataka India’s Undisputed Leader in Aerospace Manufacture 11 Karnataka Udyog Mitra, a catalyst for investments 12 Industrial Policy 2020-25 A Clarion Call for Futuristic Karnataka 15 Karnataka marches ahead,keeping COVID-19 at bay 16 Pragati Transmission: Leader in Gear Manufacturing 17 ‘NIP 2021-25 Speeds up the Journey towards a Prosperous Karnataka’ 19 Reliable Embedded Solutions for Military & Defence Applications 19 NVT Quality Certification 20 Karnataka, the crown jewel of India’s aerospace industry 22 Ensuring connectivity in Aerospace & Defence Communication

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Karnataka

India’s Undisputed Leader in Aerospace Manufacture While reviewing the preparations for the 13th edition Aero India 2021 recently, Chief Minister B S Yediyurappa said “Karnataka has a prominent place in the Aerospace and Defence map of the country catering to nearly 25% of India’s Aircraft and Spacecraft Industry.” Highlighting the fact that Karnataka’s was the first in India to release a dedicated aerospace policy, Yediyurappa said that the state also contributed nearly 65% of the country’s aerospace-related exports, besides accounting for 67% of the helicopter and aircraft manufacture for the armed forces. However, the state has a long way to go in achieving the goals set in the aerospace policy by providing an atmosphere conducive for growth. Under Yediyurappa’s able leadership, the government is committed to positioning Karnataka as the most vibrant aerospace hub in Asia and a globally-recognized aerospace destination by creating an environment ideal for the holistic growth of the sector.

B. S. Yediyurappa Karnataka Chief Minister

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ver since the establishment of Hindustan Aeronautics Limited (HAL) in 1940, Karnataka has become the home to India’s aerospace industry heralding the aerospace activities in Bangalore. And the identity of India’s prime aerospace location has strengthened subsequently with the establishment of defence PSUs and R&D institutions like BEML, BHEL, GTRE, NAL, DRDO, ADA, ADE, ISRO, IISc etc. Over these decades the

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opportunities in the aerospace sector have increased manifold consequent to the booster policy pronouncements and changes in the FDI norms for investments in the sector supported by favourable changes in the Defence Procurement Procedure, Defense Offset Policy etc.

While reviewing the preparations for the 13th edition Aero India 2021 recently, Chief Minister B S Yediyurappa said “Karnataka has a prominent place in the Aerospace and Defence map of the country

catering to nearly 25 percent of India's Aircraft and Spacecraft Industry. Being the first state to have a dedicated Aerospace Policy, Karnataka has contributed nearly 65% of the country’s aerospace-related exports, besides accounting for 67% of the helicopter and aircraft manufacture for the defence services.

Under the able leadership of Yediyurappa and through formulation of growth-booster industrial policies, Karnataka intends to take advantage of the promising scenario and strive

to become the most popular aerospace hub in Asia over the next five years and as one of the top global aerospace and MRO destinations by 2023.

“Karnataka has been a pioneer in aerospace. A quarter of India’s aircraft and spacecraft industry is based in Karnataka. Being the home to the country's first private aerospace SEZ in Belagavi, a thousand acre Aerospace Park at Devanahalli, MRO at Kempegowda International Airport and a Defence Production Cluster near HAL

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Helicopter unit in Tumakuru district, Karnataka will create a favourable environment for investor with the multiple financial incentives announced under the New Industrial Policy. The government is also providing a USD 1.5 million subsidy to anchor industries and special incentives for MRO and Regional Civil Aviation facilities. The strong growth potential of the industry attracts global player in aerospace industry to invest in Karnataka,” said Yediyurappa.

Boeing’s Focus on Aerospace R&D Putting off its plans to set up a manufacturing unit in Bengaluru, US aerospace giant Boeing has decided to convert its entire facility in Bengaluru for research and development.

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The state high level clearance committee (SHLCC) meeting chaired by Yediyurappa has approved Boeing’s request. Two year ago, the state government had approved Boeing’s plan to set up an engineering and product development facility on a 36-acre plot in the aerospace park near the international airport with an investment of about Rs.1,150 crore.

What makes Karnataka India’s Aerospace Hub? Karnataka is considered the most-sought-after aerospace destination in India and the undisputed leader for aerospace-related manufacture and services due to the presence of numerous aerospace companies and DPSUs engaged in design, development, manufacturing.

More than half of all the production units and R&D centers are located in Karnataka. A quarter of all the aircrafts and spacecraft made in India are produced in Karnataka and almost all global aerospace majors have presence in the state.

Karnataka has huge potential to emerge as an Aerospace Hub due to several strengths and advantages. The state has an ecosystem ensuring a relatively low-cost aerospace manufacturing and MRO activities compared to other destinations in Asia and Middle East. Presence of DPSUs and scientific and technical institutes along with research and development agencies give support to R&D activities and the state has skilled workforce in aerospace with more than 2000 SMEs that execute niche sub-contracting work for the DPSUs. Moreover, Bengaluru is recognized as the Silicon Valley of India with a number of top companies in IT/ITES and electronics hardware, of which many are a part of the supply chain to the aerospace sector. The state has the maximum number of engineering graduates in the country, with majority of them employed in IT, design & engineering affirming

advantageous position with reference to skill sets required to bolster aerospace activities.

Yediyurappa recently launched an affidavit based clearance (ABC) scheme as part of Karnataka’s ease of doing business (EoDB).

The scheme will have 15 selected industry services from different departments, and manufacturing industries and other firms would be eligible for the affidavit-based clearance.

Thrust on MSMEs MSMEs have huge potential to be the backbone of the global aerospace supply chain and Karnataka has been supporting MSMEs in the aerospace industry with the aim of making them globally competitive. To give preference in allotment of land in designated aerospace parks at least 30% to 40% of the land in Aerospace Park is being reserved for MSMEs. Enhanced incentives are being offered to MSMEs and they are financially supported for obtaining certification like AS9100 series and NADCAP etc.

The government has been developing and implementing special programs to enhance the innovation capabilities of MSMEs in collaboration with industry and academia.

Bangalore Aerospace Park features a state-of-theart technology Innovation Centre which will act as a catalyst for MSMEs. However, despite the strengths Karnataka enjoys, the aerospace industry faces various challenges both at institutional as well as at the operational level. Focusing on all resources to overcome these challenges and building on critical areas of opportunities can lead to sustained competitive advantage for the state in the long term.

Karnataka Udyog Mitra, a catalyst for investments

H.M.Revannagowda Managing Director Karnataka Udyog Mitra

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arnataka Udyog Mitra is an organisation under the Department of Industries & Commerce, Government of Karnataka constituted to promote as well as facilitate investments in the state and assist entrepreneurs. It is a single point of contact for all investors looking at setting up businesses in Karnataka. As a nodal agency, the role of Udyog Mitra is to execute

initiatives to enable a smooth transition from receiving an investment proposal to the eventual implementation of the project.

Today, Karnataka is driving domestic growth, building careers and creating wealth by offering a mix of resource, skill, technology and knowledge-based products and services. Udyog Mitra offers a clear roadmap for entrepreneurs and has been providing crucial direction and guidance for crores of investors over the last 15 years. As the investment promotion and facilitation agency of the State Government, Udyog Mitra functions as the Secretariat for grant of approvals and sanction of infrastructure facilities for approved projects.

The Department of Industries & Commerce acts as a catalyst for the overall development of Karnataka’s industrial sector by adopting developmental and facilitation roles. With a view to promote investment and trade, the department formulates and implements policies after identifying the sectoral advantages and considering opportunities for human resource development. The entire

process is aimed at sustainable and growth-oriented industrialization.

The department also facilitates the take-off of infrastructure projects that boost industrial growth. It also helps enhance the competitiveness of domestic industry through modernization, technology upgradation and adoption of best practices. Providing a forum for entrepreneurs and industrialists to represent their needs to the Government, which translates into policies of the state, is another task of the department.

Some of the crucial infrastructure projects facilitated by the department include growth centres in the State Export Promotion Industrial Parks, International Technology Park Ltd., Electronic City, food and agro-technology parks, agro export zones, Special Economic Zones and Bengaluru International Airport.

The department is able to reach out to small businesses as well as large industrial houses by virtue of the high degree of decentralization carried out within the organizational structure.

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Industrial Policy 2020-25 A Clarion Call for Futuristic

Karnataka While unveiling the Karnataka Industrial Policy 202025 in October, the Chief Minister B S Yediyurappa said that Karnataka is the favored choice of investors and is home to 400 of the Fortune 500 companies in the world.

Factual analysis shows that the state is currently ranked second in terms of FDI investments for the period ending June 2020 in India. Karnataka has attracted investment worth Rs.1.38 lakh crores, the highest in the country which would create 70,000 direct employments in the state. The new industrial policy aims to make sure Karnataka emerges as a global industry leader in priority sectors such as Advanced Manufacturing, Research & Development, and Innovation. The policy also has recognized thrust areas to create an ecosystem for an inclusive and sustainable development trajectory in the state. The Industrial Policy 2020-25 is indisputably a clarion call for the inception of Futuristic Karnataka

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ealizing that now is the time to change gears and embark onto a path of radical and strategic reforms to place Karnataka, a land of immense opportunity and innovation, on the global value chain map, the state government led by Chief Minister B S Yediyurappa has unveiled the Industrial Policy 2020-25. The policy is yet another initiative by the NDA government to enhance Karnataka’s stature as one of the leading hi-tech-industrialized states in the country that is in the forefront of investments.

The policy will woo domestic investors to invest in the state and set the ground ready to create large-scale employment opportunities.

The policy envisages to retain Karnataka’s position as a global manufacturing hub and to achieve higher and sustainable industrial growth through capital infusion, technology transfer, world class industrial infrastructure, skill up-gradation and benchmarking of policies and practices to best global standards. The new policy is expected to facilitate greater investments in

Jagadish Shettar, Karnataka Industries Minister releasing the New Karnataka Industrial Policy 2020-25 along with Gaurav Gupta, Additional Chief Secretary, Industries and Commerce, Govt. of Karnataka, Gunjan Krishna, Commissioner for Industrial Development, Dr N Shiva Shankar, CEO, Karnataka Industrial Areas Development Board (KIADB). advanced manufacturing, research and development (R&D), and innovation and aims to create at least 2 million jobs.

Jagadish Shettar, Minister for Large and Medium Scale Industries and Public Enterprises, has said that the new industrial policy in intended to promote the development of tier-2 and tier-3 cities in Karnataka, pivot the state to rank third in merchandise exports in the next five years, and maintain a yearly industrial growth rate of 10 percent. It will give a tremendous boost to the critical growth enablers such as thriving ecosystem, highly skilled and talented workforce, empowering institutional & policy environment favourable business climate and robust infrastructure thereby raise Karnataka’s manufacturing prowess.

“The vision is to make Karnataka, an integral part of the global supply chain.

The focus of the policy is to ensure easy access to factors of production such as land, skilled labour, finance, and ease of doing business. The policy aims to boost productivity, create good jobs and increase the purchasing power of the people throughout our state with

investment in infrastructure, skills and innovative technologies. The new policy will help the state emerge as a global leader in Advanced Manufacturing, Research & Development, and Innovation and to create an ecosystem for an inclusive, balanced and sustainable development of Karnataka,” Yediyurappa said.

Objectives and Strategies The highlight of the objectives of the new policy is to attract investments worth Rs. 5 Lakh crore and create employment opportunities for 20 Lakh people. Karnataka aims to reach 3rd position in merchandise exports in the next five years and maintain an industrial growth rate of 10 per cent per annum. The policy stands committed to provide an enabling ecosystem for technology adoption and innovation.

Karnataka’s current strength in international competition is largely based on the strength of its industry.

As a pioneer in industrial development, the state government aims to raise mid-to-long term growth potential through a commitment to innovative

growth. This encompasses strategies in support of industrial infrastructure, innovation, the new industrial revolution and the digital economy.

In order to achieve these objectives the policy presents a slew of strategies and the most important among them is to promote sustainable, balanced, and inclusive industrial growth. The provisions for enabling employment generation and increase labour market flexibility through regulatory labour reforms receive importance in the policy.

The policy urges to create strategic tie-ups for the emergence of Karnataka as the Knowledge and R&D Hub. Focus on development and promotion of the MSME Sector and facilitation of availability of industrial land are considered inevitable to place Karnataka in the forefront of India’s international trade.

By showcasing Karnataka as the “Factory of the Future”- Industry 4.0 the government focused on engaging with various stakeholders to develop sector specific skill development strategy. Through the creation on an environment that enhances ease of doing business in the state, the government

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‘The New Industrial Policy Ideally Positions to Make Future Happen Today’

“The new industrial revolution presents new opportunities for industry, particularly manufacturing and manufacturing-related service industries including smart manufacturing, customization, collaborative production etc. It is ideally positioned to make the future happen today. The focus of the New Industrial Policy 2020-25 is to build on the strengths of Karnataka’s industry and to enable it to fulfill its role as the engine of growth and to shoulder responsibility of adding more hi-tech value and employment. The current pandemic has taught us the importance of building a strong value chain. As a leading industrial State, Karnataka offers industries to not only localize supply chains and de-risk their operations but also strengthen the local ecosystem that would help in creating cost-effective and sustainable solutions,”- Gaurav Gupta, Additional Chief Secretary, Karnataka. aims to attract private investment in development of integrated/ multi/ sectoral industrial parks and flatted factories.

Highlights of the policy Export Promotion Policies Karnataka reaffirms its strong commitment towards export promotion to push economic growth and create jobs. Concrete steps will be taken to take exports on a higher growth trajectory by considering strategies more holistically

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and synergizing export promotion with industrial growth. The main focus will be on strengthening export infrastructure and logistics and increase participation in international trade fairs.

Global Market Intelligence reports will be prepared by VTPC in association with trade-related associations/Export Promotion Councils/FIEO to increase exports through geography-specific and product-specific strategies. The state will continue to confer the Annual Export Awards for export excellence in the State and encourage existing and new exporters. A Strategic Implementation Unit, which will act as an advisory body for export promotion, shall be constituted under the Chairmanship of Commissioner for Industrial DevelopmentState Export Commissioner for exportrelated inter-departmental Coordination and implementation of the strategy.

Industrial Zones and Special Investment Regions The policy categorizes Karnataka’s into zones - industrially-backward districts come under Zone-1 and Zone-2 while more industrially-developed districts are classified under Zone-3 and Zone-4.

Urban centers Bengaluru and Mysuru come under Zone-4. Incentives will be rolled out to direct greater investment to the industrially backward districts.

The policy aims to enact the Special Investment Region (SIR) Act to create, operate, and regulate such investment

regions in the state. Special investment regions would have an area of about 100 sq.kms. and be categorized as industrial townships. The first such region or SIR will comprise Dharwad, Gadag, Haveri, and Belagavi districts of Karnataka.

Another SIR is being planned comprising Shivamogga, Davanagere, Chitradurga, and Chickamagaluru districts as well as Kalaburagi, which is in the Kalyana Karnataka district (previously known as Hyderabad-Karnataka region).

Subsidies for MSMEs and Major Sectors on Focus The policy envisages production turnover-based subsidies for micro, small, and medium-sized enterprises (MSMEs) to give a fillip to industrial innovation.

The investment promotion subsidy will be based on 10 percent on turnover each year for a period of five years and limited to 20 to 30 percent of value of fixed assets (VFA). Other incentives include – exemption from stamp duty and concessional registration charges; reimbursement of land conversion fee; tax exemption on electricity tariff for MSMEs; and power subsidy for MSMEs. The policy has identified prime focus sectors for instilling growth and investments. They are automobiles and auto components, pharmaceuticals, medical devices, engineering and machine tools, knowledge-based industries, logistics, renewable energy, aerospace, defense, and electric vehicles.

Karnataka marches ahead, keeping COVID-19 at bay conferences. Further, Karnataka closed its borders with neighbouring states.

Dr. K Sudhakar Health Minister Karnataka

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arnataka is among the states in India which have tackled the COVID-19 pandemic most effectively. Though the disease had a major impact on the economy of Karnataka as the state is a top technological and industrial region, timely interventions by the state government and effective countermeasures helped control the pandemic.

Along with the rest of the country, Karnataka also imposed a lockdown to check the spread of the disease.

However, it adversely affected the state’s economy. Rising to the occasion, the state announced a series of unlock measures which helped revive economic activity.

The beginning Karnataka’s first COVID-19 case was confirmed on March 9, 2020. An employee of a multinational company who travelled from Texas via New York City and Dubai, before arriving at Bengaluru was found to be positive for the virus. Two days later, the state became the first in India to invoke the provisions of the Epidemic Diseases Act, 1897 to curb the spread of the disease. The Karnataka government subsequently closed schools and later postponed examinations.

After the state reported its first death, Chief Minister B S Yediyurappa issued a directive to close all public places with high footfall like malls, universities and colleges, movie theatres, night clubs, marriages and

Unlock measures On May 18, 2020, the Chief Minister announced several relaxations in the lockdown after receiving the guidelines from the central Ministry of Home Affairs.

During this phase of the lockdown, most of the commercial activities except shopping malls, movie theatres, hotels and restaurants were permitted. Moreover, all modes of public transport services, including buses, cabs, auto-rickshaws, and intrastate train services were allowed. The government also decided to allow people from other states in a restricted manner. During the first phase of unlocking, more relaxations were provided and opening of the religious

The lockdown imposed to check the spread of the pandemic adversely affected Karnataka’s economy.

But, the state overcame the challenge by implementing a series of measures which helped revive economic activity. Moreover, there are signs giving high hopes as the New Year dawns places, hotels, malls etc. was allowed.

The policy of trace, track, test, treat and technology (5T) was pioneered by Karnataka to fight the pandemic. During an interaction through the video conferencing, Prime Minister Narendra Modi appreciated the state’s efforts in combating COVID-19 and steps taken to unlock the economy with the gradual relaxation of the extended lockdown norms. Moreover, the Centre asked other states to adopt these best practices to their local context and replicate

them for better management of COVID-19.

The state was among the first to adopt technology to help government officials manage the number of tasks cropping up due to the pandemic. Through a team of in-house programmers, Karnataka rolled out a series of mobile applications in the first three months of the pandemic itself.

Hopes during New Year The adverse economic situation is giving way to hope during the New Year. Now, industries that were severely hit by the lockdown are on the road to recovery.

Said Federation of Karnataka Chamber of Commerce and Industries (FKCCI) president Perikal M Sundar: “Industries are increasing their capacity and the situation is improving. By March 2021, the capacity is expected to reach around 80 per cent.”

“Exports have not witnessed big growth, but domestic consumption is good. Over the next six months, it should reach regular production of pre-pandemic times,” he said.

“All consumer goods, including packaged food items, are doing well. The hospitality sector is also slowly picking up, but the COVID scare still prevails,” he explained.

Most of the migrant workers from Bihar, West Bengal, Madhya Pradesh and other states have returned, Sundar said. “There is definitely a lot of scope for employment generation in Karnataka,” he added.

According to official data, in Bengaluru, the nerve centre of Karnataka economy, 2.9 lakh industry units of the 3 lakh units started operations with 26 lakh of the 29 lakh employees back at work by September.

Secretary of state Industries Department Gaurav Gupta said several sectors have seen a hike in orders, primarily due to market demands. “We are seeing a boost in business in the processed food sector and the fast-moving consumer goods, especially for personal hygiene.

Automobile and real estate are yet to be normal, but we are seeing resurgence in these sectors too,” he said.

“While demands in the civil aviation sector are still low, industry majors have pinned their hopes on the defence aviation sector,” said an official.

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‘NIP 2021-25 Speeds up the Journey towards a Prosperous Karnataka’ Through the New Industrial Policy, Karnataka provides a unique and complete package to meet all requirements of Large, Medium, and Ultra & Super-Mega Enterprises. It helps the state to continue to be the preferred destination for OEMs looking for high-quality intermediate products equipped with the latest technology.

Jagadish Shettar, Minister for Large and Medium Scale Industries, said that concerted efforts were made in the policy to ensure Karnataka remains the most attractive destination for investment and the policy will develop Karnataka’s industrial landscape in a holistic manner and ensure well-balanced, sustainable, and inclusive industrial development throughout the state. “The new policy focuses to utilize Karnataka’s industrial infrastructure, create an investment enabling environment, and provide equitable opportunities for the people of the State. The vision of the industrial policy is to make sure Karnataka emerges as a global industry leader in priority sectors such as Advanced Manufacturing, Research & Development, and Innovation, there by flagging off the journey towards a prosperous Karnataka,” he said.

Jagadish Shettar Minister for Large and Medium Scale Industries

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anking on the immense opportunities for growth and innovation in the industrial sector of Karnataka, the state government has launched the New Industrial Policy 2020-25 to give a big boost to the ongoing industrial development in the state.

Jagadish Shettar, Minister for Large and Medium Scale Industries, said that the policy continues to keep the investorcentric approach, to build a prosperous Karnataka and create large-scale employment opportunities. Committed to bringing ease to regulatory compliance for businesses, the government has started an ambitious program for reforms in partnership with departments and various stakeholders to make it easier, simpler and quicker for businesses to start and operate in the state. And he said that policy has set the balls rolling

towards a prosperous Karnataka.

The minister said that the policy has recognized thrust areas to create an ecosystem for an inclusive and sustainable development trajectory in the state and aims to boost large and medium scale industries by introducing various incentives across sectors. “We aim to provide infrastructure & credit access, skill development training, and necessary technical support for industries all over the State. For the first time in India, Karnataka has adopted a turnover based incentive system to ensure balanced industrial development of the State.

The objective is to attract investments worth Rs. 5 lakh crore and to create employment opportunities for 20 Lakh people in the next five years,” he said.

He said that Karnataka government comes out with industrial policies at

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regular intervals of five years to ensure a well-balanced inclusive and sustainable industrial development. Ever since the last industrial policy was brought out in 2014, many changes have happened and new opportunities and focus have emerged, especially in manufacturing industry. The new policy will focus on the development of key sectors such as Automobiles & Auto components, Pharmaceutical & Medical Devices, Engineering and Machine Tools Knowledge-based industries, Logistics, Renewable Energy, Aerospace & Defence, and Electric Vehicles.

“The focus of the new policy is to exploit Karnataka's industrial potential and create and enable an environment develop infrastructure for the entrepreneurs especially in industrially backward districts, tier-2 and tier-3 cities, thereby ensuring an inclusive development of investment. By provide an enabling ecosystem for technology adoption and innovation, we aim to the holistic development of the state and look beyond

Bengaluru to tier 2 and 3 cities and as engines of economic growth. The vision of the policy is to help the state emerge as a global leader in advanced manufacturing research and development and innovation and create an ecosystem for inclusive, balanced and sustainable development of the state. The objective is to maintain an industrial growth rate of 10% per annum,” he said.

Sector-Specific Growth Boosters Based on the competitive skills and growth potential of various sectors in the state, the policy has identified specific focus sectors - automobiles, auto components, pharmaceuticals and medical devices, engineering and machine tools, knowledge-based industries, logistics, renewable energy, aerospace and defence and electric vehicles. The aim is to emerge as globally competitive market that leverage hi-tech growth in these sectors by putting immense thrust on each of them. The policy also gives a major fillip

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to research and development, intellectual property rights, technology adoption and innovation, cluster development initiatives and sustainable industrialization.

“Under the new policy the government will support training and skill-building programs to bridge the gap between traditional manufacturing and innovative technologies in addition to modernizing those sectors that are eligible for subsidy in the state. Main focus is on key sectors such as automotive and spare parts, pharmaceuticals, logistical renewable energy, aerospace and defence and medical equipment. The key aspect of the policy is to secure a remarkable position for Karnataka in global manufacturing sector,” he added.

Shettar said that the policy will provide incentives for the establishment and exponential diversification of new industries. Ultra, Super and Mega industries will be offered special packages. Discounts, will be given to investment, direct and indirect job

creation industries will be encouraged to adopt and use new technologies for local needs. There will be economic incentives for manufacturing industry for water harvesting in the premises of the companies and encourage companies to improve pollution mitigation and waste management in manufacturing sector.

“The state has taken several steps to revive the economy braving the challenges posed by the Covid-19 pandemic and that is the main reason for Karnataka to continue as the most favourable destination for investors. After the central government announced relaxations following the lifting of lockdown, Karnataka was the first state to resume the activities in industrial sectors. Besides large industries, MSME too got back to the path of growth immediately,” he said.

Investments Thrive Despite Pandemic Effect Due to the various industrial-friendly activities by the state government,

Karnataka received a lot of investment proposals as recognition of the growth prospects here. Investment proposals worth Rs. 1.57 lakh crores were registered in Karnataka while the total investment proposals received in India was worth Rs 3.76 lakh crores. It is almost 45% contributed by the state. Between August 2019 and December 2020, the State High Level Committee and State High Level Single Window Clearance Committee have approved 410 new projects worth an investment of Rs.77490 crores.

“The policy has also grouped districts into three zones to incentivize investments in the industrially backward districts. The industrially backward districts are classified in Zone-1 & 2, and Bengaluru Urban and Rural districts are classified in Zone-3. All new industrial investment projects shall create maximum possible direct employment opportunities with a minimum employment of 70% to Kannadigas on an overall basis and 100% in case of Group C and D employees,” he said.

Tumkur Set to Become Industrial Hub In order to make Karnataka a strong player in the global value chain in the South India, the central government has cleared Rs.1701 crore worth Tumkur Industrial Corridor project with an estimate employment generation of 88500, out of which 17,700 persons will be from service industries such as retail, offices and other commercial opportunities in the initial development phase. Laws have been amended simplified for land purchase and the option to convert agricultural land for non-agricultural purposes can be chosen through online windows now for receiving approval within 30 days.

The Greenfield industrial city will be selfsustained with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistic hubs along with reliable power and quality social infrastructure. Tumkur will soon be a major industrial hub in South India.

“The government will support the creation of clusters for the rapid growth of industries. Karnataka was the first state to create sector-specific clusters to attract capital investment and the examples are toy, textile and wellness clusters,” he said.

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ADVANTAGE KARNATAKA

Karnataka, the crown jewel of India’s aerospace industry Over the years, the state has witnessed unprecedented growth of the aerospace industry and currently attracts more than 65 per cent of the investments taking place in the sector in India. Moreover, the future too holds big potential.

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arnataka is the undisputed leader of India’s aerospace industry. The beginning of the industry in the state could be traced back to the 1940s, when the Hindustan Aeronautics Limited (HAL) was established. HAL was followed by defence R&D and public sector institutions such as BHEL, NAL, GTRE, DRDO, BEML, ISRO, ADA and ADE among others.

Even since, the state has been the engine of growth for the aerospace industry in India. Having huge potential and offering tremendous opportunities for entrepreneurs, Karnataka has witnessed unprecedented

growth of the aerospace industry. Currently, the state attracts more than 65 per cent of the investments taking place in the sector in India.

Good ecosystem Karnataka enjoys several advantages that make it a hub of the aerospace industry in India. They include the presence of several large defence Public Sector Units, numerous scientific and technical educational institutions, a number of research and development agencies and expertise in aerospace thanks to the presence of major aerospace organisations.

Other strong points of Karnataka include

over 2,000 Small and Medium Enterprises engaged in specialized work for large PSUs, world-class software companies making it the Silicon Valley of India and heavy equipment manufacturers.

Another advantage offered by the state is low cost of aerospace manufacturing and MRO activities compared to other areas in Asia and Middle East.

Karnataka also boasts of the maximum number of engineering graduates in the country. This signifies that talented human resources with required skill sets for the aerospace industry are always available. Similarly, there is a large opportunity for related services like ground handling and the manufacture of ground support equipment. Karnataka is also blessed by an excellent location, efficient telecommunications network and other good basic facilities. Bangalore’s proximity to industrial hubs like Pune, Hyderabad and Chennai, and road, rail and air connectivity also have spurred the growth of the aerospace industry in Karnataka.

In addition, a generally peaceful state that embraces different cultures, favorable climate, congenial atmosphere for private investors, cosmopolitan lifestyle and excellent health care and education facilities also provide a suitable environment for industry to thrive.

One more major factor contributing to Karnataka’s status as India’s aerospace capital is that state governments over the years have always implemented investorfriendly policies. In order to create an effective aerospace ecosystem, the state government involves the private sector also and has established Special Economic Zones. A large number of new companies are launching their operations on the

outskirts of Bangalore, in key industrial belts surrounding the city and in north Karnataka. Even amid economic crisis situations, Karnataka’s investor-friendly governments have simplified procedures and fast-tracked business approvals through a single window clearance mechanism. All these factors combine to make the state an extremely attractive destination for the aerospace industry.

Top firms Among the industrial units that spur the aerospace success story of Karnataka, HAL has pride of place. A governmentowned firm, the Bangalore-based HAL is one of the largest aerospace companies in Asia. Under the Ministry of Defence, HAL is involved in all aspects of aerospace production such as design, manufacture, assembly and overhaul of aircraft, helicopters, jet engines, design and fabrication of spare-parts of aircraft, navigation and communication devices related to the sector and operations of airports. The company has tie-ups with several international and domestic aerospace agencies and exports its products to more than 20 countries.

National Aerospace Laboratories (NAL) is another significant aerospace agency based in Karnataka. Established by the Council of Scientific and Industrial Research (CSIR) in 1959 at Delhi, the firm’s headquarter was shifted to Bangalore in 1960. NAL is engaged in developing aerospace technologies, design, development and manufacturing of light and mediumsized civil aircraft and development of all-composite trainer aircraft. The firm also has facilities for inspecting accidents and failures in aerospace.

Aeronautical Development Agency (ADA), set up in 1984, is yet another leading aerospace firm having its headquarters in Karnataka. Managed by the Ministry of Defence (MoD), ADA is the nodal agency responsible for the design and development of India’s Light Combat Aircraft (LCA). ADA has engaged in a partnership with HAL to convert the country’s dream project into reality.

Among the agency’s activities are developing advanced software for avionics, systems, independent validation and verification, flight simulation, computeraided design (CAD), computer-aided manufacturing (CAM) and computeraided engineering (CAE). The agency’s research and development efforts are materialized into production by partnership with leading multinational companies such as Airbus, Dassault Systemes, Boeing and Parametric Technology Corporation (PTC), among others.

A bright future With the Karnataka government considering the development of the aerospace sector as its top priority, the industry is still attracting large investments. Experts have stressed that the future of aerospace in the state is bright.

Recognizing that it needs expertise from foreign Original Equipment Manufacturers (OEMs) for the successful development of commercial and defence aircraft, India is engaged in introducing several reforms.

These measures are expected to create a better environment and offer more opportunities for growth in the aerospace sector. No wonder, the state government is promoting Karnataka as the aerospace hub of not only the country but also Asia.

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ADVANTAGE KARNATAKA

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Key test instruments and their applications are explained here.

Site Master S331L, S332E, S820E are popular Site Master and used in cable, antenna, connector analysis in field in labs or on ships or aircraft.

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Vector Network Analyzers are perfect elements of an RCS measurement system. They have the measurement speed and accuracy – as well as Time Domain capability – to provide the overall S-parameter critical performance information to help ensure successful stealth designs.

They also employ the Frequency Domain Reflectometry (FDR) measurement technique for distance-to-fault (DTF) measurements. This allows our instruments to locate slight signal path degradation that is missed by other instruments that use Time Domain Reflectometry (TDR) techniques. Such detection capability helps ensure the safety and security of peacekeepers, as well as the effectiveness of their missions LMR Master: Model S412E Ideal for technicians and engineers engaged in field testing RF performance of NBFM, P25, TETRA, NXDN, dPMR, and LTE for commercial, public safety, maritime, and critical infrastructure radio systems. RF Power Measurements of both CW and modulated signals also possible with LMR Master S412E. LMR Master supports both indoor and outdoor coverage mapping of analog and digital radio systems - no PC required during measurement!

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Signal Generator MG369x series are used to simulate RADAR Signal and used in research, maintenance activities.

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Middle East Supplement

Publishing Special issues of ARABIAN DEFENCE for IDEX & NAVDEX 2021 For publishing feature articles, interviews, & advertisements, Please contact : editor@arabiandefence.com | editor@aeromagasia.com

Aeromag Asia,Aerosun Media Pvt Ltd, Aeronautical Society of India Building, Suranjandas Road, Off Old Madras Road, Bangalore 560075. Karnataka. www.aeromag.in

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KARNATAKA RNI REG.ADVANTAGE NO:KARENG/2014/57767

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