The policy sets an ambitious target of attracting Rs 50,000 crore in investments, with the potential to generate direct employment for 1 lakh youth across the state. The Cabinet meeting was held at the Triveni Complex in Prayagraj amid ongoing Maha Kumbh.
The state Cabinet also approved the new FDI Policy to boost setting up of foreign industries in Uttar Pradesh 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,” it said.
“The Uttar Pradesh Aerospace and Defence Unit and Employment Promotion Policy 2024 aims to position Uttar Pradesh as a leading aerospace and defence hub, accelerating indigenous capabilities, fostering innovation, and promoting global collaboration to enhance national security and economic prosperity,” it added. The policy aims to strengthen the aerospace and defence (A&D) sector in Uttar Pradesh 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, the government said.
A&D-based common facility centers are planned to enhance the skills and capacities of startups and MSMEs in the UPDIC. The policy further aims to attract large A&D manufacturing projects and DPSUs, while promoting research and innovation, ensuring UP becomes a pivotal contributor to India’s defence and aerospace landscape, it added.
Chief Minister Adityanath said the policy 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 centres in A&D. It targets an investment of Rs 50,000 crore over the next five years and promises employment opportunities for 1 lakh youth,” the statement said.
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 UP government said that the Ministry of Defence has set an ambitious target to double the country’s A&D production to USD 25 billion and exports to USD 5 billion by 2025-26. By 2047, the A&D manufacturing sector is expected to contribute 25 per cent to the nation’s GDP.
“To achieve these goals, two defence industrial corridors have been established in India- in Uttar Pradesh and Tamil Nadu- positioning UP as a key player in this transformative vision,” it noted.
The Cabinet also approved the subsidy payment to UPSIDA (UP State Industrial Development Authority) for the land allotted to M/s Ashok Leyland Ltd. 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,” it noted in the statement.
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, it said.
The Cabinet has approved the recommendations of the High-Level Authorized Committee (HLEC), 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, it said.
“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 Gallant Ispat Ltd. in Mirzapur,” it added.
