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UP Government’s most ambitious plan to attract investment in the State.

Shubham Singh by Shubham Singh
14 May 2018
in Trending
Yogi government Private Schools Fee Parents Wheat uttar pradesh defence industrial corridor

PC: Indian Express

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During the UP investors’ Summit 2018, PM Modi announced a project of Rs 20,000-crore, Defence Industrial Corridor in Bundelkhand region to bring development in one of the most backward regions of Uttar Pradesh.  PM Modi, at the investors ‘summit, said “Of one of the two defence industrial corridors mentioned in the budget, one is proposed in the Bundelkhand region of the state which will bring an investment of Rs 20,000 crore and generate employment avenues for 2.5 lakh people.” He further added, “Keeping in mind the development of Bundelkhand, the government has decided to extend the Uttar Pradesh’s defence corridor to Agra, Allahabad, Lucknow, Kanpur, Jhansi and Chitrakoot.” 

During his speech, PM Modi emphasized that, “Red tape nahin, red carpet hoga UP mein udyogon ke liye (There will be red carpet, not red tape for industrialists coming to UP). It seems the UP government is doing exactly what PM Modi had promised in his speech.  Uttar Pradesh government, under CM Yogi, is rolling out the red carpet for the companies who are willing to install big defence and aerospace units in the recently announced ‘Defence Industrial Corridor’ in the state by PM Modi. CM Yogi is offering big discounts including reimbursement of 25% of land cost for the project and also many other concessions and benefits for the companies wishing to setup mega units. UP government is offering lucrative deals to attract investors and companies for CM Yogi’s ambitious Defence Industrial Corridor in one of the most backward regions of UP.  The project would contribute significantly in creating employment, boosting the growth and development in the region.

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UP Industrial Development Minister Satish Mahana told ET, “We are ready to do anything to attract industry to UP. Nothing was thought on this by earlier governments. The defence and aerospace manufacturing policy of UP for the defence industrial corridor will perhaps be the most attractive in the country. Land is most expensive part of any project and we are for the first time planning to offer a major concession on land in the defence corridor announced by the PM.”

CM Yogi’s government would be notifying about 3,000 hectare of land between six nodes in the Bundelkhand region. But the most attractive offer is of up to 25% reimbursement of the cost of land to companies investing over Rs 300 crore or generating minimum 1,000 direct job opportunities in the notified area of Defence Industrial Corridor. Reimbursement of upto 25% of the cost of land in the notified areas of Defence Corridor will be applicable for Mega units & Anchor units. Reimbursement of upto 10% of the cost of land in the notified areas of Defence Corridor for Micro, Small and Medium Enterprises (MSME) units. Defence Punlic Sector Units (DPSUs) will be provided Land on lease at subsidized rates anywhere in the state.

Along with these discounts many other incentives and subsidies will also be provided. This includes interest reimbursement at 5% p.a. for loan taken for plant & machinery, loan taken to build infrastructure, loan taken for setting up Industrial Research, full duty exemption and 100% Electricity Duty exemption for 10 years to new units. Twenty percent reimbursement of project cost of setting up ETP by D&A units of upto maximum INR 1 crore will be provided. The scheme also lists out various other lucrative benefits for setting up plants in the corridor.

CM Yogi’s government is also initiating three private ‘defence parks’ at Kanpur, Agra and Jhansi and ‘aerospace parks’ at Lucknow, Agra and Kanpur of 100-150 acre each on the corridor. These parks will provide ‘plug-and-play’ industrial infrastructure allowing companies to focus on their core business. These parks will include, manufacturing area (components, sub-components, sub-assemblies, aerospace parts) and SEZ, testing centre, Hardware/Embedded Technology Center, Technology innovation centre, Housing and Common facility centre.

This ambitious and prestigious Defence Industrial Corridor project is being closely monitored by the PMO, the Defence Minister and UP CM. UP government is leaving no stone unturned to woo the investors. Another perk for the investors is that the corridor is located on the Golden Quadrilateral with excellent road network, Agra Lucknow Expressway, major national & international airports connecting the rest of India, strong logistics infrastructure – at Kanpur, Dadri, Boraki, Varanasi and alongside the catchment area of Amritsar-Delhi-Kolkata Industrial Corridor and Eastern Dedicated Freight Corridor and the upcoming Bundelkhand Expressway linking Chitrakoot to Agra Lucknow Expressway, proposed Poorvanchal Expressway linking Lucknow to Ghazipur, upcoming international airports at Jewar in NCR and proposed NW-1 connecting Allahabad to Haldia port. According to Uttar Pradesh government, the defence corridor is expected to create about 2.5 lakh jobs. The corridor has the potential to become a milestone in ‘Make in India’ initiative.

Tags: CM YogiMake In IndiaPM ModiUP Government
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