Centre plans defence unit in Odisha, may rope in Tatas: Union Minister Dharmendra Pradhan

BHUBANESHWAR / NEW DELHI: Union minister Dharmendra Pradhan has urged the Tata Group to set up defence manufacturing units at Tata Steel’s proposed special economic zone (SEZ) in Ganjam district of Odisha.

Tata Steel is building a ferrochrome plant near Gopalpur, in Ganjam district, on 2,970 acres originally acquired in the 90s for a steel plant. While the plant will take up 400 acres, the company plans to set up an industrial park in the remaining area for which it said it would woo investors, including those from other Southeast Asian countries.

"I have asked Tata officials to consider setting up defence manufacturing units at Gopalpur as an initiative under our ‘Make in India’ thrust," Pradhan said at a press conference in Bhubaneshar on Wednesday. The Odisha-born minister of petroleum was listing out the achievements in and plans for his home state, after one year of Narendra Modi's government at the Centre.

An executive of Tata Steel, who did not wish to be named, said, "This is a mutli-sector SEZ and could also include defence." The company had plans to hold road shows inviting Southeast Asian investors to invest in the industrial park.

The Tata group has a strong focus on defence with contracts for missiles, aero structures and vehicles in the kitty. The group has tieups with almost all major defence players, including Sikorsky, Boeing and Airbus. As part of its expansion plan, the Tatas have been eyeing new joint ventures in the defence sector under the ‘Make in India’ initiative.

A major contract for which the group has been shortlisted is a Rs 12,000-crore deal to manufacture military transport aircraft in India, to replace the air force's Avro fleet. A Tata-Airbus combine has been approved for the deal and contract and cost negotiations will start with the defence ministry soon. This mega project would require a greenfield facility with an adequate amount of land to set up an aircraft assembly plant. This would be the first private aircraft assembly and production unit in India. However, there are no indications yet from Tata on the proposed location of this plant.

The free land near Gopalpur—an increasingly precious resource for companies in India—is yet to be registered in Tata Steel's name. However, the company has made progress with the displaced reportedly agreeable to its revised R&R package.