India's first aviation SEZ opened in Belgaum

Source: http://www.bombaynews.net/story/565523

Global aerospace majors such as Europe's SABCA and Canada's Magellan Aerospace will set up shops in India's first special economic zone (SEZ) devoted exclusively for the aviation industry here.

Karnataka Chief Minister B.S. Yeddyurappa Friday inaugurated the aerospace engineering and manufacturing SEZ, set up by QuEST Global, one of the leading engineering and consultancy firms in the world.

'The QuEST Global SEZ in Belgaum has opened up newer avenues to attract foreign investment in the manufacturing space. We are now poised to offer expertise through competent local talent and corporate commitment,' the chief minister said on the occasion.

The SEZ, spread over 300 acres, currently houses an engineering services facility, a precision machining facility and a sheet metal facility.

Civil Aviation Minister Praful Patel, also present at the launch, said India's aviation industry was on growth path.

'Indian aviation industry is being watched closely by all global majors and it on a steady growth path,' Patel said.

'We fully support the vision of entities like QuEST Global, which by setting up this project has displayed its commitment not only towards economic growth, but also to the development of local areas,' Patel added.

QuEST has signed agreements with three global corporations - SABCA, Magellan Aerospace and France's Farinia SA - to set up units in the SEZ.

SABCA will manufacturer metallic parts for Airbus aircraft in its Belgaum unit, while Magellan will set up a facility to manufacture components and sub assemblies for aero engines.

Foundry and forging major Farinia will establish an aerospace forging facility.

'The initial investment for the SEZ project is Rs.150 crore. We are looking at long-term gains,' Aravind Melligeri, chairman and co-founder of QuEST Global said.

'We are looking forward to creating more than 7,000 jobs locally and infusing $500 million into the economy in the next 10 years,' he added.

Second IT boom on cards

Karnataka, which has been in the forefront of setting a model for other states in the new economy sectors, is all set to usher in a second IT revolution.

The move follows the State’s bid to give shape to an Information Technology Investment Regions (ITIRs) policy mooted by the Union Ministry of Information Technology & Communications. The State government through its nodal agency—Karnataka Electronics Corporation (Keonics)—has identified five corridors for setting up the proposed ITIRs. The ITIR policy is aimed at promoting investment in IT, ITeS and electronic hardware manufacturing (EHM) sectors. The corridors identified for ITIRs are Hubli-Dharwad-Belgaum, Bangalore-BIAL-Devanahalli, Mangalore-Surathkal-Udupi, Shimoga - Bhadravathi and Bangalore - Tumkur regions. However, how far the new move would lure investors into ITIRs is debatable given that some of the IT parks in State’s Tier-II cities have elicited only muted response. Official sources told Deccan Herald that each ITIR is expected to be in a 40-sq km area covering 10,000 acres in each region. The ITIRs would boast of excellent infrastructure so that prospective investors can reap the benefits of networking and greater efficiency through common infrastructure and support services. Such a complex would also help boost exports and generate employment. Sources said Keonics had invited expression of interest (EoI) from consultants to prepare a techno-economic pre-feasibility report (TER), in the first phase, for the Hubli-Dharwar-Belgaum ITIR. Of the three consultants—PriceWaterhouse Coopers Pvt Ltd (PWC), IL&FS and Mott MacDonald—shortlisted for giving technical presentation, PWC and Mott MacDonald were chosen. The two would undertake necessary survey and submit a techno-feasibility report (TFR) which will go into the identification of government and private land available for acquisition, water availability and power. Since undertaking the TFR, to be submitted in 60 days, would cost over Rs 30 lakh to Rs 3 crore, the proposal has been set for financial clearance. The government is keen to take up an ITIR in the Bangalore-BIAL-Devanahalli region as well simultaneously, EoI has been invited from consultants for TFR. The ITIRs would also host processing facilities where IT, ITeS and EHMs would be located and non-processing areas, which will include residential, commercial and other social and institutional infrastructure. The minimum processing area for ITIR will be about 40 per cent of the total designated area. The ITIRs may include SEZs, industrial parks, free trade and warehousing zones and export-oriented units. To be developed on public-private partnership, the centres will ensure external physical infrastructure linkages—roads, airports, and rail. Each ITIR will have large IT/ITeS/EHM units. While ITIRs will be built and managed by a developers, other facilities would be provided by the Centre and State government.

QuEST Global gets Govt. of India Notification to Lease out Land at its Precision Engineering SEZ at Belgaum

Sourec: http://www.businesswireindia.com/PressRelease.asp?b2mid=17178

Bangalore, Karnataka, India, Monday, October 13, 2008 -- (Business Wire India)
QuEST Global, a leading provider of outsourced engineering services and manufacturing, announced today that it has received the Government of India notification for its SEZ (Special Economic Zone) in Belgaum, Karnataka. QuEST Global has also received approval for the units that are coming up in phase 1 of the SEZ.

QuEST Global’s SEZ will be a sector specific precision engineering SEZ, covering over 300 acres of land in the initial phase. This notification allows QuEST Global to lease out the land and also provide build-to-suit requirements in the SEZ to other prospects who would like to set up their business units in QuEST Global’s precision engineering SEZ. The SEZ will provide world class infrastructure in the industrial estate, concentrating mainly on aerospace and automotive related industries. Phase 1 of the SEZ will be operational by December 2008, and Phase 2 is expected to be operational by June 2009.

QuEST Global SEZ has already signed up with 3 clients, namely QuEST Global Engineering, QuEST Global Manufacturing and Aerospace Processing India (API),a joint venture between QuEST and Magellan Aerospace for establishing special aerospace processing capabilities in India.

At the SEZ in Belgaum, API’s facility of 17,500 sq. ft. will support activities such as chromic acid anodizing line, titanium etching, shot peen, paint and primer booth, MPI and FPI in the initial phase.QuEST Global Manufacturing will expand its existing precision machining operations that are currently set up in Bangalore and QuEST Global Engineering will set up an engineering services facility, to provide low cost engineering services.

By starting operations in Belgaum which is a Tier 3 town in India, QuEST Global Engineering is pioneering the way to ensure low cost delivery of engineering in the future also.QuEST Global has obtained specific unit approvals for all the 3 units along with a sanction for the industrial layout.

“Belgaum, as a hub for setting up a supply chain for the Aerospace industry, is the perfect destination as it is ideally located in the industrial heartland of Karnataka, Maharashtra and Goa, thereby providing access to a large number of manufacturing and machining talent.It is also excellently located in terms of logistics, being just off the Golden Quadrilateral NH4 highway (Bangalore-Pune-Mumbai highway), with proximity to 3 sea ports (Goa, Karwar and Mumbai) and 3 airports (Belgaum, Hubli and Kolhapur).In addition, the presence of a number of educational institutes in the region, will ensure a good supply of engineers at all levels. Along with engineering services and manufacturing, QuEST now has a precision engineering SEZ, of which are very few in the country.This move demonstrates QuEST Global’s thought leadership, which sets it apart from its competitors.” said Aravind Melligeri, Chairman & Co-founder, QuEST.

About QuEST

QuEST is a leading provider of outsourced engineering services and manufacturing. The company helps customers in the aerospace, power generation, oil & gas, civil structures, industrial products, and transportation verticals to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support, vendor management, and in-house precision machining. Through our Global Product Development framework and our on-site/off-shore/on-shore models, we leverage our local presence and global reach to support globalization initiatives for our customers. QuEST employs over 1500 people and has delivery centers in India, USA, Italy, Japan and footprints in UK, Germany, France, Spain and China. For more information, visit www.quest-global.com.

Karnataka Govt planning industrial corridor

Hubli (PTI): The newly-elected BJP government in Karnataka plans to establish an industrial corridor along National Highways NH4 and NH218 with the objective of generating employment to people in North Karnataka region, state Minister for Large and Medium industries Murugesh Nirani has said.

Speaking to reporters, the minister, who is in-charge of Dharwad district, said that industries could tap into the raw material resources and basic facilities available along the two highways, connecting Bangalore to Belgaum and Hubli to Bijapur.

He said that iron ore was available in Bellary and instead of exporting iron ore, iron sponge plants could be set up at Bellary, Tumkur and Chitradurga districts. Similarly, steel plants could be set up to provide employment.

Similarly in Bagalkot, Gulbarga and Tumkur district, where limestone is available, cement plants could be set up.

Nirani said that in Bagalkot, Bijapur, Belgaum, Shimoga districts, centres of horticulture, foodprocessing units could be set up using the agricultural products here.

The government would appeal to industrialists to establish industries in Hubli-Dharwad, for which a high level committee would meet at Bangalore on June 27 to consider 36 pending plans and encourage them to move to North Karnataka for establishing industrial units here, he said.
Of the 45 SEZs planned, two for Belgaum and one for Hubli-Dharwad had been sanctioned, he added.

State Clears Land for 45 SEZs, Including Mangalore

Source: http://nageeta.blogspot.com/2008/06/state-clears-land-for-45-sezs-including.html

Bangalore, Jun 14: The state government formally approved more than 2,400 hectres of land for setting up 45 special economic zones (SEZs) in Karnataka expected to bring in total investment of over Rs 24,000 crore.The approved SEZs include 33 IT/ITeS companies with investment worth over Rs 18,000 crore. On Friday, major and medium industries minister Murgesh R Nirani said the approved SEZs could generate 10 lakh jobs in the next few years.

Nirani, who owns two cement units and a sugar factory in Bagalkot district, said: “As an industrialist, I am aware of investors’ problems. This government wants to create an investor-friendly climate in the state.’’Investment to the tune of Rs 3,384 crore and earmarking 112 hectres exclusively for airport-based SEZ has been formally approved. Sector-specific product SEZs contribute Rs 1,824 crore and hardware and BT SEZs Rs 633 crore and Rs 750 crore respectively.

The Centre, which gives in-principle approvals for all SEZs in the country, has given its nod to only 8 SEZs in Karnataka having total investments of Rs 20,220 crore, including Rs 400 crore from the IT/ITeS sectors.Nirani said the government, without going in for acquisition of fertile land, will seek the consent of the farmers before developing a SEZ. “Of the developed land, about 20% will be given to farmers, besides employment to one member from the family,’’ he said.Proposed seven exclusive industrial zonesSteel zone — Bellary, Koppal, Raichur districtCement zone — Bagalkot, Bijapur, Gulbarga, BijapurFood processing zone — Shimoga, Mysore, Bijapur, Bagalkot, Kolar, Bangalore RuralIT/ BT zone — Mangalore, Mysore, Hubli-Dharwad, BelgaumAutomobile zone — Dharwad and BangaloreReadymade garment zone — Bangalore, Bellary and MysorePetroleum, chemicals and petrochemicals complex — Mangalore and UdupiIn-principle nod for NandagudiMajor and medium industries minister Murgesh R Nirani said that the government has given in principle approval for the Nandagudi SEZ, but its promoters have to acquire land.Keeping regional interests in mind and also to focus on the rapid development of backward areas, Nirani said the government proposed setting up of seven exclusive industrial zones to promote industries in steel, cement, food processing, IT/BT, petrochemicals, automobile and readymade garments.

Chennai-Bangalore-Mumbai corridorNirani said the Centre has taken up a feasibility study on the multi-crore Chennai-Bangalore-Mumbai (CBM) industrial corridor. The proposed CBM corridor, on the lines of Chennai-Bangalore corridor, will establish connectivity from Bangalore to Belgaum covering 11 districts and 20 towns. “To make Karnataka a leading industrialized state and to enhance the level of investments, we propose to develop industries along 100-150 kms on both sides of the corridor,’’ Nirani said.

In a meeting convened by department of industries policy and promotion (DIPP) in the Union ministry of commerce and industries involving Karnataka, Tamil Nadu and Andhra Pradesh governments for consultation on Chennai-Bangalore corridor proposal a few months ago, the Centre gave positive signals for the state’s move to connect and extend the Chennai-Bangalore industrial corridor till Mumbai.

This could pave the way for conducting a feasibility report onCBM corridor.New industrial policyIn a move to boost industrial development, the industries minister proposes to modify the existing industrial policy. “The government wants to bring in more investment to the state through unveiling a new industrial policy in the next three months,’’ Nirani said. He said modifications would be carried out to the existing policy of 2006-11. Industrial policies of Maharastra, Andhra Pradesh, Gujarat, Tamil Nadu and Rajasthan would be studied before framing the new policy, Nirani added.

5,000 acres of land marked for SEZ

5,000 acres of land marked for SEZ15 Sep, 2006 l 2306 hrs ISTlTIMES NEWS NETWORK

BELGAUM: The district administration has identified 5,000 acres of land near Kakati village on the national highway to establish a special economic zone. The project, after approval, would generate employment for 1.5 lakh people.

Chief minister H D Kumaraswamy has already assured that the project will get approval, MLA Abhay Patil told reporters here on Friday.

Patil said the proposal has been prepared by the administration and the identified land belongs to the forest department, but is not reserved forest.

Land from Ramdurg and Saundatti taluks would be allotted to the forest department and its land here would be acquired for the SEZ.

Two companies from Delhi have evinced interest in investing in the proposed SEZ. Kumaraswamy has been asked to give tax and power concessions for the companies investing in the SEZ, and hold a meet of investors in Belgaum.

To this, the CM has given his nod during discussions with office-bearers of the Belgaum Chamber of Commerce, he said.

A proposal has also been sent to the government to establish a truck terminal and Autonagar near Honga, on the national highway.

The present Autonagar scheme failed as it is away from the highway, and garages have refused to move there, Patil said.

He also said that land to create infrastructure for Vidhana Soudha here has been identified and the acquisition process will begin soon. The chief minister, during the assembly session here, is expected to lay the foundation stone for the proposed Vidhana Soudha, ring road and international-level cricket stadium, he said.