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UP govt approves new aerospace and defence policy, reforms in FDI

The Uttar Pradesh government approved several key policies during a Cabinet meeting chaired by Chief Minister Yogi Adityanath in Prayagraj.

UP govt approves new aerospace and defence policy, reforms in FDI

These include the Aerospace and Defence Unit and Employment Promotion Policy 2024, aimed at attracting investments worth ₹50,000 crore and generating 1 lakh jobs. The policy positions Uttar Pradesh as a leader in the aerospace and defense sector, fostering innovation, global collaboration, and indigenous capabilities. It includes incentives like land and capital subsidies, transportation exemptions, and special provisions for women entrepreneurs.

The state also approved a new Foreign Direct Investment (FDI) Policy to attract foreign industries. Under this policy, up to 80% subsidy on land costs will be provided to foreign firms investing in the state, along with other reforms to boost industrial development. Additionally, the UP Industrial Investment and Employment Promotion Policy was updated to encourage mega-category industrial units.

Key initiatives include the establishment of a robust manufacturing ecosystem within the Uttar Pradesh Defence Industrial Corridor (UPDIC), aimed at developing startups, MSMEs, and state-of-the-art facilities. The government plans to attract large aerospace and defense projects and research investments, aligning with India's goal of self-reliance in the sector.

The Cabinet also approved a land subsidy for Ashok Leyland to establish a facility with a production capacity of 2,500 buses annually, along with a center of excellence. Furthermore, capital subsidies were sanctioned for major industrial units like Triveni Engineering and Gallant Ispat Ltd., supporting mega-category projects.

Another significant decision was the establishment of an independent Prosecution Directorate under the Indian Civil Defence Code 2023. This new entity will operate independently, with directors appointed to ensure impartial prosecution. The directorate will function at the district level, overseen by the District Magistrate, with dedicated funding for smooth operations.

These measures aim to boost industrial growth, strengthen the state's defense manufacturing capabilities, and streamline prosecution activities, contributing to Uttar Pradesh's development and economic prosperity.

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