Defence and Aerospace
Sector Overview :
The Uttar Pradesh Government is steering the nation toward an avant-garde future with its dynamic Defence & Aerospace (D&A) policy. Positioned in the heart of the Bundelkhand region, the Defence Industrial Corridor (DIC) stands as a beacon of innovation and opportunity. Spearheaded by the Government of India, this monumental project is set to energize the sector with a whopping Rs 50,000 crore investment, creating a staggering 2.5 lakh job opportunities. This initiative propels Uttar Pradesh to the forefront of defence and aerospace manufacturing, offering a fertile ground for investors ready to be part of this transformative journey.
  1. Overview
  2. Objectives
  3. Enablers
  4. Fiscal Incentives
Sector Overview
1
• Rs 50,000 Cr Investment  & 2.5 lakh jobs expected.
• Largest SME base suitable   for Defence Industry.
• 5000 hectares of developed land  for Defence Industrial Corridor.
• 9 Cities viz.  Chitrakoot, Jhansi, Kanpur, Lucknow, Agra, Aligarh, Ghaziabad, Meerut, GB Nagar benefitted by UP DIC.
Objectives
2
  • Establish the State as D&A manufacturing hub in the country.
  • Promote establishment of private D&A park in the State.
  • Provide support to the units which wants to establish themselves in the defence corridor.
  • Promote R&D in the D&A sector.
Enablers
3
  • Liberal Govt Schemes  including relaxed offset limits under GoI’s revised Make II procedures, Defence Procurement & Production policy.
  • 100% FDI  Is allowed in Defence industry (74% through automatic route and thereafter through Government route).
  • Defence Ecosystem :  7 Ordnance factories, 4 HAL units, 2 Small Arms/ Field gun Factory.
  • R & D Ecosystem : R&D base with DRDO, ASERDC HAL, IIT-Kanpur Aerospace division, IIT BHU and other Forensic labs.
Investment and Fiscal Incentives
4
Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
  • Defence Corridor worth INR 20,000 crore to be established in nearly 3000 hectares of land in Bundelkhand Region.
  • Private Defence and Aerospace D&A Park  to be developed in Bundelkhand region to attract 15% additional capital investment subsidies up to limit of INR 15 crore.
  • Capital Subsidy at 15% of FCI (except land cost) upto Rs. 15 Cr for Mega Anchor & Anchor D&A Unit, at 7.5% of FCI (except land cost) upto max Rs. 7.5 Cr for MSME & Vendor Unit in Bundelkhand region.
  • Rebates on transport charges to Mega Anchor & Anchor units at 50% up to consolidated maximum Rs. 2 Cr for transporting imported plant and machinery from logistic park/ transport hub/ port/ harbour tothe production unit and at 30% subsidy up to Rs. 1 Cr (per annum for 5 years) for transporting finished goods to logistic park/ transport hub/ port/ harbour from the production unit.
  • Subsidy for installation of Effluent treatment plant  by anchor D&A unit upto 1 Cr.
  • Technology transfer  (Mega Anchor & Anchor units) at 75% for the first 5 units and @50% towards the next 5 units up to Rs. 50 lakhs per unit.
  • Skill Development subsidy  upto INR 10000 per person per month for 12 months to Defence unit incurring cost of skilling for 20 persons.
  • Patent Fee Reimbursement  upto 1 Cr per annum.
  • Financial assistance for obtaining quality certification upto 20 lakhs per year.
  • Reimbursement of Trademark Registration fee upto 10 lakhs per year.
  • Grant for setting up of Common Facility Centres at 25% wherein 75% grant has been provided by GoI.
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