Cabinet nod paves way for defence industrial corridor
LUCKNOW : The state cabinet on Tuesday approved the UP defence and aerospace manufacturing and employment promotion policy, paving the way for investment in the UP defence industrial corridor announced by Prime Minister Narendra Modi during the Investors Summit held in February. Chief secretary Anoop Chandra Pandey said the proposed industrial corridor will pass through six districts- Aligarh, Agra, Jhansi, Chitrakoot, Kanpur and Lucknow. The focus will be on Bundelkhand region where a big parcel of land is available at low rates. The state government expects ₹50,000 crore investment within five years and 2.50 lakh employment generation in the corridor area.
LUCKNOW: The state cabinet on Tuesday approved the UP defence and aerospace manufacturing and employment promotion policy, paving way for investment in the UP defence industrial corridor announced by Prime Minister Narendra Modi during the Investors Summit held in February.
Chief secretary Anoop Chandra Pandey said the proposed industrial corridor will pass through six districts- Aligarh, Agra, Jhansi, Chitrakoot, Kanpur and Lucknow. The focus will be on Bundelkhand region where a big parcel of land is available at low rates.
The state government expects Rs 50,000 crore investment within five years and 2.50 lakh employment generation in the corridor area. The UP Expressway Industrial Development Authority (UPEIDA) has been made the nodal agency to acquire 3,000 hectare land for the industrial corridor, he said.
The aim of the UP defence and aerospace manufacturing and employment promotion policy is to draw public, mega and anchor defence units to invest in the corridor. To promote private defence parks equipped with plug and play facilities, he said.
Along with strengthening the industrial ecosystem, the policy aims at promoting research, development and testing facilities in the corridor.
The industrial units that invest over Rs 1,000 crore in defence and aerospace sectors, to manufacture fighter aircrafts,
tanks and helicopters will be categorized as mega anchor units. The units that invest over Rs 200 crore in Bundelkhand and Purvanchal region, above Rs 300 crore in central and western UP, above Rs 400 crore in Gautam Buddha Nagar and Ghaziabad will be categorized as anchor units, Pandey said.
The units that are located in the cluster of an anchor unit and supply 40% of its production to the anchor unit have been categorized as vendor units. The central government has framed rules in 2006 for the categorization of the MSME units. The public sector units will be also invited to invest in the defence corridor, Pandey said. To promote investment in the defence corridor, the state government will give 25% subsidy in defence and aerospace units. The government will also give subsidy in the transportation of imported instruments and transportation of finished products.The state government will also give subsidy on technology
transfer, establishment of effluent treatment plant, facilities for common testing and research facilities for public sector units. The state government will also compensate the interest taken by the units for research and development work.
To promote investment and employment generation the state government will give subsidy in stamp duties, compensate SGTS, concession on electricity duty, Pandey said. The private defence and aerospace parks will have multi-facilities.
The state government will compensate the interest on the loan to purchase land, interest on the loan for developing infrastructure facilities in the parks and interest on the loans taken for developing common technical facilities in the parks and setting up of the training center.
Pandey said the state government will also give case-to-case promotion to the mega anchor units which make a minimum Rs 1,000 crore.