In a cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj on Wednesday, the Uttar Pradesh government approved 10 key proposals aimed at accelerating the state’s development.
Among these, the groundbreaking Aerospace and Defence Unit and Employment Promotion Policy 2024 was introduced to position Uttar Pradesh as a leader in the sector.
The policy sets an ambitious target of attracting Rs 50,000 crore in investments, with the potential to generate direct employment for one lakh youth across the state.
The cabinet meeting was held at the Triveni Complex in Prayagraj.
The Yogi cabinet also approved the new FDI Policy to boost the setting up of foreign industries in UP in order to propel industrial and economic growth. Under this policy, the state government will offer up to 80 per cent subsidy on land to the foreign firms investing in the state. Additionally, major reforms have been introduced in the UP Industrial Investment and Employment Promotion Policy to further boost industrial development.
The Uttar Pradesh Aerospace and Defence Unit and Employment Promotion Policy 2024 aims to position the state as a leading aerospace and defence hub, accelerating indigenous capabilities, fostering innovation and promoting global collaboration to enhance national security and economic prosperity.
The policy aims to strengthen the aerospace and defence (A&D) sector in UP by creating a robust, hi-tech and efficient A&D manufacturing ecosystem within the UP Defence Industrial Corridor (UPDIC). It also seeks to attract startups and investments for the development of state-of-the-art facilities in the sector.
A&D-based common facility centres are planned to enhance the skills and capacities of startups, and micro, small and medium enterprises (MSMEs) in the UPDIC. The policy further aims to attract large A&D manufacturing projects and DPSUs, while promoting research and innovation, ensuring that Uttar Pradesh becomes a pivotal contributor to India’s defence and aerospace landscape.
Chief Minister Yogi Adityanath aims to drive the growth of companies that align with India’s vision of self-reliance in the aerospace and defence (A&D) sector. The new policy encourages establishment of artificial intelligence and software development centers in A&D. It targets an investment of Rs 50,000 crore over the next five years and promises employment opportunities for one lakh youth.
The policy offers significant incentives, including front-end subsidies for A&D units, land subsidies, stamp duty exemptions and capital subsidies. Additionally, the Yogi government will provide benefits like exemptions on transportation charges, with special provisions for women entrepreneurs to encourage their participation in the sector.
The Defence Ministry has set an ambitious target to double the country’s A&D production to $25 billion and exports to $5 billion by 2025-26. By 2047, the A&D manufacturing sector is expected to contribute 25 per cent to the nation’s gross domestic product (GDP). To achieve these goals, two defence industrial manufacturing corridors have been established in India – in Uttar Pradesh and Tamil Nadu – positioning UP as a key player in this transformative vision.
Combined Hospital in Balrampur to
be transferred for medical education
The cabinet has approved the transfer of the 166-bed Government Combined Hospital in Balrampur to the Medical Education Department. This move aims to establish the Autonomous State Medical College, Balrampur, by converting the Balrampur satellite centre of King George Medical University (KGMU).
The establishment of this medical college is intended to provide specialised healthcare to the public and create medical education opportunities for youth. Additionally, 1,394 academic and non-academic posts have been created in line with MCI/NMC standards to facilitate the conversion and operation of the medical college.
The Yogi government has approved the subsidy payment to UPSIDA for the land allotted to Ashok Leyland Limited under the front-ended land subsidy provision of the Incentive Policy 2023, aimed at encouraging FDI and investments from Fortune 500 companies. The empowered committee’s recommendation from September 27 regarding this subsidy payment has been accepted.
As per the FDI Policy 2023, 75 per cent of the land cost, amounting to Rs 106.51 crore, is payable to UPSIDA for the land provided to Ashok Leyland. The proposed project will initially establish a facility with a production capacity of 2,500 buses per year, along with a centre of excellence. The total project cost is estimated at Rs 186 crore.
The Yogi cabinet has also approved the recommendations of the high-level authorised committee chaired by the chief secretary during its meetings in August and September 2024. Under the Industrial Investment and Employment Promotion Policy 2022, special facilities and concessions have been sanctioned for mega-category industrial units in the state.
As part of this initiative, Rs 250 crore has been approved as a capital subsidy for Triveni Engineering and Industries Ltd. in Moradabad, and Rs 10,749 crore as SGST reimbursement for Gallantt Ispat Ltd. in Mirzapur.
The cabinet also gave nod to final bid document for purchase of 25L smartphones
Under the Swami Vivekananda Yuva Sashaktikaran Yojana, the Yogi government will procure 25 lakh smartphones for free distribution to empower the youth technologically. The cabinet has granted approval for the final bid document, and the scheme will be applicable for five years.
A budget of Rs 4,000 crore has been allocated for the financial year 2024-25. This innovative initiative aims to provide smartphones to skilled youth enrolled in higher education, technical education, health education, skill development training, and ITI programmes, ensuring they become technically empowered and future-ready.
The cabinet has approved selection of successful bidders to operate medical colleges in public-private partnership (PPP) mode with viability gap funding from the Government of India. This initiative targets unserved districts in Uttar Pradesh, including Hathras, Baghpat and Kasganj, where no medical colleges currently exist in the government or private sector.
Following technical and financial evaluations of received tenders, Rajshree Educational Trust was selected as the lowest bidder (L-1) for Hathras and Kasganj, while Jaipal Singh Sharma Trust was chosen for Baghpat. This step aligns with the state’s policy to establish medical colleges in underserved districts through PPP mode, ensuring equitable access to medical education and healthcare facilities.
