The new policy will aim at providing higher incentives to investors setting up their units in the defence and aerospace manufacturing sector in UP’s Defence Industrial Corridor.

Energy minister AK Sharma said the cabinet decided to amend the policy formulated in 2018 to provide incentives up to a maximum of Rs 500 crore (against the existing Rs 15 crore) to attract large investments. “The new policy provides for a capital subsidy of 7 per cent or a maximum of Rs 500 crore in non-Bundelkhand region and 10 per cent or a maximum of Rs 500 crore in the Bundelkhand region of the state,” he said.

Awanish Kumar Awasthi, UPEIDA chief executive officer said chief minister Yogi Adityanath had asked for reviewing all sectoral policies keeping in view the proposed Global Investors Summit-2023 that envisages to attract investment of Rs 10 lakh crore.

The state government has so far been able to attract investments worth Rs 2,800 crore to Rs 3,000 in the defence and aerospace manufacturing sector against a set target of Rs10,000 crore. This initiative by the Uttar Pradesh government is a step forward in its dream to have a trillion-dollar economy.

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In his address at the UP summit, Gautam Adani, Chairman of the Adani Group highlighted the importance of having self-reliance in high quality ammunition and the manufacturing complex is Adani Defence’s endeavour towards equipping our Armed Forces with state-of-the-art battlefield equipment.

Speaking on the eve of the signing of the MoU, CEO, UP Expressways & Industrial Development Authority (UPEIDA) and Additional Chief Secretary, Awanish Kumar Awasthi, said this project is going to prove as a landmark in the history of indigenous defence manufacturing.

Giving more details about the plans to build South Asia’s largest manufacturing facility, Ashish Rajvanshi, President & CEO of Adani Defence & Aerospace, said, “With our vision of nation-building combined with the clarion call of Atmanirbhar Bharat by PM Narendra Modi, we are setting up South Asia’s largest integrated ammunition complex in the Uttar Pradesh Defence Corridor. The ammunition complex will have state-of-the-art technology across small and medium calibre ammunition, along with short-range air defence missiles. It shall be a key facilitator in India’s goal of achieving $5.0 billion exports in defence manufacturing.”

The complex, which is spread over 250+ acres and an investment of around 1,500Cr is slated to have state-of-the-art technology across small and medium calibre ammunition, along with short-range air defence missiles.

There are plans to hire around 1,500 people, who will use the best-in-class technologies to manufacture high-quality ammunition for domestic and export markets.

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Policy initiatives taken by the government in the past few years were:

• Announcement of 18 major platforms for industry led design and development.

• Notification of two ‘Positive Indigenisation Lists’ of total 209 items of Services and one ‘Positive Indigenisation List’ of total 2851 items of Defence Public Sector Undertakings (DPSUs), for which there would be an embargo on the import beyond the timelines indicated against them.

• Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs.

• Launch of Innovations for Defence Excellence (iDEX) scheme involving start-ups & Micro, Small and Medium Enterprises (MSMEs).

• Simplification of Industrial licensing process with longer validity period.

• To provide autonomy and enhance efficiency and unleash new growth potential in the Ordnance Factories, the Government has corporatized OFB and converted it into seven new Defence Public Sector Undertakings.

• Simplification of Make Procedure.

• Implementation of Public Procurement (Preference to Make in India) Order 2017.

• Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.

The capital budget for procurement from domestic industries is continuously increasing. In the last few years, it has gone up from 58% of total capital budget to 68% for the year 2022-23 amounting to Rs. 84597.89 Crore. In addition to it, Government of India has also funded some DPSUs & Ordnance Factories in last five years to enhance their manufacturing capacity which is as follows:

• A total of Rs 90.08 crore has been invested under Repair & Refurbishment of Machinery and Infrastructure (RRMI) Scheme in Hindustan Shipyard Limited (HSL).

• Rs 880 crore has been provided to Goa Shipyard Limited (GSL) under Infrastructure Augmentation Plan as Government funding.

• A total expenditure of Rs 5,263.92 crore has been incurred by erstwhile OFB under modernisation [Renewal & Replacement (RR), New Capital (NC) P&M, Capital Civil Works].

• An amount of Rs 2,765.95 crore has also been released to the 7 new companies during the current financial year for capital works and equity.

There has been a decline in percentage of capital expenditure on procurement of Defence equipment from foreign vendors from 48% in 2018-19 to 36% in 2020-21.

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1. Deep-Tech Innovation & Startup Incubation Centre
2. Design & Simulation Centre
3. Testing & Evaluation Centre
4. Centre for Industry 4.0/Digital Manufacturing
5. Skill Development Centre
6. Business Development Centre

The BRAHMOS Manufacturing Centre, announced by BrahMos Aerospace, is a modern, state-of-art facility in the Lucknow node of UP DIC. It will cover over 200 acres and produce the new BRAHMOS-NG (Next Generation) variant, which carries forward the lineage of the BRAHMOS weapons system. This new centre would be ready over the next two to three years and will commence production at a rate of 80-100 BRAHMOS-NG missiles per year.

Rajnath Singh exuded confidence that the two units will play a pivotal role in bolstering national security, defence production as well as the economy of Uttar Pradesh. He said, the state-of-the-art facilities will prove to be an important milestone in the defence sector.

On the ‘Defence Technology and Test Centre’, the Raksha Mantri said, the Centre will provide the technological base to develop defence products keeping in mind the young innovators and startups in Amausi region of Uttar Pradesh. He added that the Centre will make all endeavours to fulfil the creative energy, capabilities and aspirations of the youth of Uttar Pradesh. It will help in bringing the MSMEs of Uttar Pradesh together and bring the state at the forefront in the field of defence and aerospace manufacturing, he said. He added that the Centre, through skill development, will create direct and indirect employment in the field of defence and aerospace manufacturing.

He termed BRAHMOS as the world’s best and fastest precision-guided weapon which has strengthened India’s credible deterrence in the 21st century.

The state-of-the-art Defence Technologies & Test Centre is being set up to implement the MoU exchanged between Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) and DRDO during DefExpo-2020 at Lucknow in presence of the Raksha Mantri and the UP Chief Minister. The DTTC, Lucknow will follow the design-build-test-learn cycle for technology consultancy & handholding of the Deep-Tech Startups & industries.

It will facilitate industries through establishing a centralized state of the art technology infrastructure which will accelerate the product development and reduce the induction time & the turnaround time for the futuristic systems development through its 6 subcentres. This unique setup will act as a bridge for Industries & Startups to grasp the DRDO’s IPRs, Patents & ToTs. It will extend holistic handholding to Industries, Startups & Academia in UP DIC. It will promote the growth of Industries & Startups in UPDIC and Ease of Doing Business and contribute to building an AtmaNirbhar Bharat.

The BRAHMOS supersonic cruise missile system is one of the most successful missile programmes in the world. India has undertaken jointly in partnership with its closest strategic ally Russia. As the world’s best and fastest precision-guided weapon, BRAHMOS has fortified India’s deterrence power in 21st century. Designed and developed by India-Russia JV entity BrahMos Aerospace, supersonic cruise missile BRAHMOS has continued to evolve as the most versatile weapon in its genre. To carry forward this excellent lineage, BrahMos Aerospace has initiated work on a new, more advanced variant of the missile – BRAHMOS-NG. This new missile, having smaller, lighter and smarter dimensions, would be designed for deployment on a wider number of modern military platforms, including land, sea, underwater and air. It will hugely bolster Indian military’s modern combat capability and flexibility in the next few years.

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