Sanya Saxena
A defence corridor is a channel or route along which domestic defence equipment manufacture by the public sector, the private sector, and MSMEs is aligned to improve the operational capability of the defence forces.
It aims to aid nation’s military production self-sufficiency and contributes to the promotion of ‘Make in India,’ helping in cutting imports and boosting export of these commodities to other countries. Additionally, it enhances the defence manufacturing ecosystem by promoting the expansion of private domestic manufacturers, especially MSMEs and start-ups, through synergistic technology development. [1]
The Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu have been formed with the goal of attracting over Rs. 10,000 crore in investment in each Industrial Corridor.
Uttar Pradesh Defence Industrial Corridor (UPEIDA) consists of six nodal points i.e. Aligarh, Agra, Kanpur, Chitrakoot, Jhansi and Lucknow along the corridor with the potential to create defence industry. The objective is to bring up the state as a major advanced Defence manufacturing hub and map its significance in the world. It has Rs. 8,764 crore of investment potential and Rs. 1,552 crore of current investment.
The Government of India announced that the Tamil Nadu Defence Industrial Corridor includes Chennai, Tiruchirappalli, Coimbatore, Salem, and Hosur. This corridor fosters clusters with suitable testing and certification facilities, export facilitation centres, and technology transfer facilitation, among other things. The corridor was officially launched in January 20, 2019. [2]
MOD stated in the latest PIB release on 21ST March 2022, that as per the memorandum presented by the Tamil Nadu Minister of Industries in September 2021, MOD has asked to take immediate and appropriate action along the similar lines of existing policies. This includes proposals for testing and certification infrastructure, DRDO labs, Commercial Production Units for AEWCS, Defence Land Transfer, and the formation of a Joint Venture (JV) with HAL, among various other tasks.
The development of the corridors calls the different state governments to supply and support physical facilities such as connecting roads, electricity, water, and sewage systems. 39 firms are expected to invest around Rs.11,103 crore in the Tamil Nadu Defence Industrial Corridor (TNDIC) which has a current investment of Rs. 2,217 crore.
Clearly, there is much more investments required in the Tamil Nadu Defence Corridor before it becomes commercially viable and creates a self generating virtuous cycle of larger and more complex industries in the same eco-system.