Among the incentives that the UP state government offered to companies to pitch itself as a leading destination for defence and aerospace manufacturing at the expo were a capital subsidy of up to Rs 500 crore, a 25% land subsidy and research and development tie-ups with premier institutes.
The UP government announced that it was likely to sign 13 industrial MOUs worth Rs 564 crore at DefExpo-2022 to partner with over 100 companies with an estimated investment target of around Rs 600 crore.
“The UP government is committed to develop the defence and aerospace sector with modern infrastructure, better connectivity and policy support.
Among the key features of its recently announced policies, the government will be offering a capital subsidy of 7 per cent up to Rs 500 crore to all defence and aerospace units being set up in Aligarh, Agra, Lucknow and Kanpur nodes.
A 10% subsidy up to Rs 500 crore for investors in Jhansi and Chitrakoot nodes of Bundelkhand was also announced, along with a 25% land subsidy for anchor defence and aerospace units. The state government will bear the cost of developing infrastructure of all six nodes. The state will also offer research and development tie-ups with prominent academic institutions like IIT-Kanpur and IIT-BHU, as well as Defence Research and Development Organisation (DRDO) and HAL’s Aerospace Systems & Equipment R&D Centre (ASERDC).
