Bangalore: With estimates indicating that the Indian aviation industry will need investments totalling $120 billion by 2020, the Bangalore-based Society of Indian Aerospace Technologies and Industries (SIATI) has come out with a blueprint that forecasts spectacular growth for the industry through public-private partnerships and international collaborations. Partnerships that include both research and development and production.

The blueprint by SIATI, which represents over 300 small, medium and large scale private industries, in addition to major aerospace players engaged in the development and manufacture of aircraft, structures, systems/equipment, components and materials, encompasses a period till 2020. Penned by SIATI's president C.G. Krishnadas Nair and aeronautical scientist K.N. Krishnamoorthy, Vision 2020 forecasts all round growth of both the civil and military aviation sectors.

Challenges

Speaking to The Hindu , Dr. Nair, who is a former chairman and managing director of the public sector Hindustan Aeronautics Limited (HAL), said the demand for transport/cargo aircraft, the need for more military aircraft, the recently introduced off set clause in aircraft and defence procurements (that are valued at over Rs. 300 crores), the investment for airport infrastructure, and training and educating the manpower that is needed to manage the industry will provide challenging opportunities for growth, that will necessarily be achieved through public-private partnerships.

"For long HAL was the only organisation capable of designing aircraft and helicopters. Its capabilities were enhanced by the Defence Research and Development Organisation (DRDO), National Aerospace Laboratories (NAL) and the Aeronautical Development Agency (ADA). But today there are a number of private companies such as Taneja Aerospace, Dynamatic Technologies and Tata Advanced Materials, which have emerged as potentially major players in the aviation sector. Other private industries such as Godrej and Sobha Nadathoor have also entered aerospace manufacture. These organisations will develop their own in-house capability for design and development activities and partner with HAL and the Indian Space Research Organisation (ISRO) in future programmes."

Long term partnerships

According to Dr. Nair, HAL, NAL, ISRO and DRDO will in the days to come "synergise with the private sector and focus on long term partnerships, to reduce lead-time and costs in the realisation of their projects, to enhance global market share and exports."

Dr. Nair citied the example of HAL whose corporate plan envisions outsourcing around 30 per cent of production and 20 to 30 per cent of design activities over the next 5 to 10 years. "The focus is not just on components but on complete structural assemblies, equipment and systems ready for the final assemble and integration of aircraft. HAL will also look for risk sharing partners right from design through manufacturing and marketing of its new projects such as the Light Attack Helicopter, Light Observation Helicopter, Indian Multirole Helicopter, Multirole Transport Aircraft, future fighters and advanced jet trainers."

Among the successful examples of public-private partnership that SIATI's blueprint highlights are the BrahMos missile which is being produced by the DRDO in collaboration with Russian and Indian private industries; the Light Combat Aircraft programme which has a number of private players involved in the development of components, systems and equipment; and ISRO's association with the private sector for both satellites and launch vehicles.

More ventures

Highlighting the setting up of design and manufacturing activities in India by a number of overseas aerospace companies, the blueprint forecasts the establishing of many more such ventures during the next 5 to 15 years. It also forecasts the incorporation of joint ventures in the manufacture of aero structure, aircraft equipment and systems, airport security and, aircraft and passenger handling equipment.

On the setting up of maintenance, repair and overhaul facilities, the blueprint forecasts that overseas aircraft, engine and systems manufacturers will set up joint ventures in India.

The forecast says India's airlines industry is expected to spend more than Rs. 1,32,000 crores to buy 343 aircraft by 2015.

And, while aircraft movement will increase from 1,000,000 in 2006-07 to 1,513,000 in 2020, passenger traffic will go up during the same period from around 90 million to 219 million.

Printer friendly page  
Send this article to Friends by E-Mail