In an attempt to give a fillip to the Defence Corridor proposal, the State Government announced the much-awaited Defence Manufacturing policy giving sops to entrepreneurs, willing to invest while projecting an investment of Rs 50,000 crore in the next five years and generate 2.5 lakh jobs.
The State cabinet that met in lucknow on Tuesday, approved a new policy called ‘UP Defence Aerospace Unit and Employment Generating Policy, 2018’ and said that it was the best in the country as it had something or the other for investors.
Chief Secretary Anup Chandra Pandey said that six districts — Aligarh, Agra, Jhansi, Chitrakoot, Kanpur and lucknow - will be notified for the Defence manufacturing hub, though the focus will be on Bundelkhand region.
“Around 3000 hectares of land would be acquired by nodal agency UPIEDA and entrepreneurs will be given land under plug and play formula,” he said adding that entire land would be acquired by September next.
Without revealing as to who all have evinced interest in the sector, Pandey said, “The who’s who of India have shown interest in investing in Uttar Pradesh.” Briefing media persons, Pandey said that international consultants like Pricewater House Cooper has been appointed which will give its report on Defence manufacturing potential areas in the state.
He said that there will be two categories of investment.One, mega anchor project worth over Rs 1000 crore which will include companies willing to build aircraft, tanks, choppers and two, anchor units which could invest Rs 200 crore in Bundelkhand and Poorwanchal areas, Rs 300 crore in Madhayanchal and Rs 400 crore in western UP.
“Investments below this would get all benefits under Investment and MSME Policy in the State,” he said. The Chief secretary said that the government would provide 25 per cent subsidy on circle rate of land purchased by investors while transport subsidy of 50 per cent or Rs 2 crore per year would be given for importing equipment. “Transport subsidy would also be given on finished goods for exporting which will be to the tune of 30 per cent or Rs one crore per year,” he said. The Government would provide subsidy on technology transfer, setting up of effluent treatment plant, setting up labs for quality control and patenting. “The Government will provide 100 per cent subsidy on quality certification and trade mark. The government will provide 100 per cent subsidy for stamp duty in Bundelkhand and Poorvanchal, 75 per cent in other areas while in Gautam Buddha Nagar (Noida) and Ghaziabad, it will be 50 per cent,” Pandey said adding that there would be 70 per cent rebate on State Government Sales Tax.
Besides, the government would bear 5 per cent or Rs 20 crore per year as interest on capital loan by companies while they would be given 5 per cent interest subsidy on investment loan and 100 per cent subsidy for 10 years on electricity duty.
The government would also provide 50 per cent subsidy on interest for seven years to investors, who would set up defence manufacturing parks.
In another decision, the government approved a proposal to get bank loan to the tune of Rs 12,000 crore from PNB for construction of Purvanchal Expressway. Additional Chief Secretary (Information) Awanish Awasthi said that in the first phase Rs 7800 crore would be given by banks at the rate of 8.30 per cent interest for 15 years.
“The loan would be repaid in 48 instalments with 3 years moratorium and instalments would be paid through funds collected from toll on the Expressway,” he said.
In the other decision, the government gave its nod for construction of civil airports at Aligarh, Azamgarh, Moradabad and Shravasti under Regional Air Connectivity policy.
The government also approved asset settlement of UP Mining Development Corporation which was wound up while the government gave approval to give government land for bus depot in Allahabad city.