UP Defence and Aerospace Unit and Employment Promotion Policy

On August 16, 2022, Uttar Pradesh cabinet gave nod to “Uttar Pradesh Defence and Aerospace Unit and Employment Promotion Policy-2022”. This policy would make the existing policy more flexible and lucrative. It will attract more investments in defence and aerospace manufacturing sectors in the state.

UP Defence & Aerospace Unit and Employment Promotion Policy-2022:  

  • Under this policy, high incentives will be provided to investors who seeks to set up their units in defence and aerospace manufacturing sector in the state.
  • This new policy has amended 2018 policy, in a bid to provide incentives up to a maximum of Rs 500 crore, as opposed to current incentive of Rs 15 crore. This will attract large investments.
  • It also provides a capital subsidy of 7% in non-Bundelkhand region while a subsidy of 10% in Bundelkhand region of UP. It accounts for maximum of Rs 500 crore incentives in both the regions, against the incentive of Rs 5 crore under 2018 policy.
  • In a financial year, maximum of Rs 50 crore will be provided as capital subsidy. If the amount of subsidy is more, it would be given in instalments in subsequent years.
  • It also provides facilities for power, road, water etc across new industrial areas.

The new policy has been formulated in line with policies of other states. It is more lucrative and futuristic. UP government has also received an investment of Rs 2,800 crore to Rs 3,000 crore as of now, in the defence and aerospace manufacturing sector. Though, it has set a target to receive investment of Rs 10,000 crore.




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