UP defence manufacturing policy envisages Rs 50,000-cr investment, 2.5 lakh jobs

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Lucknow | Updated: July 4, 2018 8:10:34 AM

The Uttar Pradesh government on Tuesday announced its much-awaited defence and aerospace manufacturing policy, projecting an investment of Rs 50,000 crores over the next five years.

To woo investors, the state government has offered a slew of incentives for establishing units along the corridor.

The Uttar Pradesh government on Tuesday announced its much-awaited defence and aerospace manufacturing policy, projecting an investment of Rs 50,000 crores over the next five years.

The UP Defence and Aerospace Units and Employment Promotion Policy 2018, cleared by the state cabinet on Tuesday, which is expected to generate 2.5 lakh jobs, is replete with a number of sops for the investors.

The policy had been in the making for the last four months since Prime Minister Narendra Modi announced the `20-crore Bundelkhand Defence Corridor during the investors’ summit in Lucknow in February.
Speaking to newspersons, government spokesman Shrikant Sharma said, under this project an investment of Rs 50,000 crore and creation of 2.5 lakh jobs is envisaged.

“The corridor, which would run alongside the proposed Bundelkhand expressway, would have six districts of Aligarh, Agra, Jhansi, Chitrakoot, Kanpur and Lucknow.

The newly-appointed chief secretary, Anup Chandra Pandey, who has been overseeing the preparation of the policy as industrial development commissioner, said that UP’s defence manufacturing policy is the best in the country and it would provide all financial and administrative help to the private sector as well as PSUs.

To woo investors, the state government has offered a slew of incentives for establishing units along the corridor. The policy has provided for two categories — mega and anchor units. While mega units would be offered reimbursement up to 25% of the cost of land on investing over Rs 300 crore or creating at least 1,000 direct job opportunities in notified area of the defence corridor, the same would also be applicable to anchor units, which will design and manufacture defence and aerospace platforms with investments of over `200 crore and bring along at least 10 vendor units.

Vendor units are supposed to be located in the same cluster as anchor units and it should supply at least 40% of its end product to an anchor unit.

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