Now, a policy for more incentives in UP’s defence output sector
The new policy provides for a capital subsidy of 7% or a maximum of ₹500 crore in non-Bundelkhand region and 10% or a maximum of ₹500 crore in the Bundelkhand region of the state, says minister
LUCKNOW The Uttar Pradesh cabinet on Tuesday approved the Uttar Pradesh Defence and Aerospace Unit and Employment Promotion Policy-2022, making the existing one more flexible and lucrative, providing higher incentives to investors setting up their units in the defence and aerospace manufacturing sector in the state.
Chief minister Yogi Adityanath presided over the meeting of the state cabinet that approved more incentives to attract larger investment in the defence and aerospace manufacturing sectors in the UP Defence Industrial Corridor.
Energy minister AK Sharma said the cabinet decided to amend the policy formulated in 2018 to provide incentives up to a maximum of ₹500 crore (against the existing ₹15 crore) to attract large investments. The new policy provides for a capital subsidy of 7% or a maximum of ₹500 crore in non-Bundelkhand region and 10% or a maximum of ₹500 crore in the Bundelkhand region of the state, he said.
The UP Defence and Aerospace Manufacturing and Employment Promotion Policy-2018 (amended now) did not provide for incentives of more than ₹5 crore for higher investments. It provided for a capital subsidy of 15% or a maximum of ₹15 crore for investment in the sector in Bundelkhand region and incentive of 10% subject to a maximum of ₹10 crore in non-Bundelkhand region. It provided for an incentive of 5% or a maximum of ₹5 crore in non-Bundelkhand region and 7.5% or a maximum of ₹7.5 crore in Bundelkhand region.
The capital subsidy of more than ₹50 crore would not be given in a financial year. If the amount of subsidy is more, the same may be given in instalments in subsequent years. The policy provides for providing facilities for power, water and road etc in new industrial areas.
Infrastructure and industrial development commissioner Arvind Kumar said the new policy is more lucrative and futuristic and has been formulated keeping in view the policies in other states. UPEIDA chief executive officer Awanish Kumar Awasthi said chief minister Yogi Adityanath had asked for reviewing all sectoral policies keeping in view the proposed Global Investors Summit-2023 that envisages to attract investment of ₹10 lakh crore.
He said the state government had been able to get an investment of ₹2,800 crore to ₹3,000 crore so far in the defence and aerospace manufacturing sector against a target of ₹10,000 crore. He said the new policy would help in achieving the target and also in making the state a trillion-dollar economy. “The chief minister has also asked for development of industrial corridors along the expressways,” added Awasthi.