DIPP gives nod to set up India’s first Defence Industrial Park at Ottappalam

February 1, 2016

Department of Industrial Policy and Promotion (DIPP) of Union Government has given its final approval to Kerala Government’s approval to set up India’s first Defence Industrial Park at Ottappalam.
Proposal in this regard was forwarded by Kerala Industrial Infrastructure Development Corporation (Kinfra), a Kerala government owned Public Sector Company.
Key facts

The proposed defence park will be established as part of Union Government’s flagship Make in India programme and state government’s Make in Kerala project.
It will have modern common infrastructure facilities aimed at attracting component manufacturers in the defence industry.
Union government also has agreed to bring the park under the Modified Industrial Infrastructure Upgradation Scheme (MIIUS).
The park would be established in 60 acres of land at cost of Rs. 231 crore with the financial help of Central and State government.
Union government will invest Rs 50 crore in it while the rest of the amount would be met by the State government.

Ottappalam was selected for the defence park keeling in view its strategic location in terms connectivity and other common facilities such as dedicated power and water supply along with infrastructure for the research and development centre.
Implications: This defence park will play important role bridging the gap related to defence components manufacturing sector. This sector has demand estimated at 700 million dollars a year from India and other countries having friendly relationship with it. It will also provide platform for export of products related to defence from small- and medium-sized enterprises (SMSEs).

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