Raje meets Parrikar, seeks more defence investment
Chief minister Vasundhara Raje has requested defence minister Manohar Parrikar to exploit possibilities of investment in the field of defence in RajasthanUpdated: Aug 10, 2015 16:46 IST
Chief minister Vasundhara Raje has requested defence minister Manohar Parrikar to exploit possibilities of investment in the field of defence in Rajasthan.
During her meeting with Parrikar in New Delhi on Sunday, Raje said that Rajasthan can provide abundant opportunities of investment and may be considered as a venue for expansion plans of PSUs manufacturing defence equipment.
Raje said that an industry-friendly atmosphere has been created in Rajasthan and well-known industries of the world are already doing business in Rajasthan. Foreign investment zones like the Japanese Zone have been set up in Neemrana, Alwar.
“Resurgent Rajasthan Partnership Summit is being organised in Jaipur on 19-20 November, 2015 and investors from the country and abroad are expected to attend the event. Defence Research and Development Organisation (DRDO) may consider further expansion plans of its defence research activities in Rajasthan,” said Raje.
The chief minister said RIICO has land of over 500 acres of land available near Jaipur, Jaisalmer and Barmer, where defence sector manufacturing companies can invest. She said that under Rajasthan Investment Promotion Scheme (RIPS-2014), the state government has provided a package of incentives, including investment subsidy of 65% of VAT and CST for 10 years to benefit enterprises making an investment equal to or above `500 crore, besides providing investment subsidy of 50% of VAT and CST for 7 years to enterprises investing from `100 to 500 crores in the defence sector. Provision has also been made to provide 50% exemption from payment of entry tax on capital goods, she said.
Raje suggested that Larsen and Toubro, Tata Advance System Limited (TASL), Mahindra Aerospace and Defence Systems, Reliance Group, Kirloskar Brothers, Sterlite Group and Ashok Leyland (Hinduja Group), which are already working in the defence sector manufacturing, could be promoted to invest in Rajasthan. She also mentioned possibilities of investment by new joint ventures of foreign companies in India.
Raje, discussing on opportunities for domestic and foreign investment, said geographical conditions of Rajasthan are favourable for investment in defence sector. Apart from infrastructure development, various corridors are being developed which are safe from the strategic point of view. The Delhi-Mumbai Industrial Corridor, passing from Rajasthan, will generate stronger possibilities in skill development and will provide smooth transportation of raw material and safe delivery of manufactured cargo to ports. Thus, Rajasthan has become an ideal venue for expansion of defense sector PSUs, she said.