VIJAYAWADA: Bharat Electronics Limited (BEL) has sanctioned Rs 384 crore under phase-one towards construction of a unit at Palasamudram in Sri Satya Sai district. Besides manufacturing missiles and testing radar, it has decided to develop the facility as a defence system integrated complex to manufacture state-of-art defence equipment.
Under the chairmanship of BEL director Parthasarathy, the Capital Investment Committee of the PSU, met at Machilipatnam on Saturday and decided to invite tenders for the project, a statement released to this effect said. The progress of the facility will be reviewed every six months. It may be noted that Andhra Pradesh Industrial Infrastructure Corporation (APIIC) had allotted 914 acres to BEL in 2016 to establish the facility.
The firm had obtained land conversion and environmental clearances only in 2020. However, the progress of the project was hit due to the pandemic. The construction of the unit could not take off due to several other restraints and as budget had not been allotted. Subsequently, APIIC had asked BEL to surrender the land and also pay Rs 5 crore towards penalty as the project could not be realised in time.
Boost to R’seema growth
Against this backdrop, representatives of BEL met officials of APIIC to confirm that construction of the factory will be taken up with the few relaxations in the norms. According to the statement, the representatives informed APIIC that the proposed relaxations in the norms will ensure the factory is constructed on a larger scale, further leading to creation of jobs and ancillaries. “This improvised ecosystem will be the ray of hope for all-round development of Rayalaseema region,” it added. APIIC responded positively to BEL’s request and accorded the relaxations as well. The company has prepared files with the approval of the Ministry of Defense.