Wednesday, May 29, 2024

CM Yogi Adityanath’s Bold Vision: Revolutionising UP’s Aerospace & Defence Sector!

By Staff Correspondent

Situated in the heart of India, Uttar Pradesh (UP) has long been a symbol of the country’s rich cultural, historical, and spiritual heritage. Yet, as the country enters a new era, so too does this celebrated state. Under the astute leadership of Chief Minister Yogi Adityanath, Uttar Pradesh is on the cusp of a monumental transformation – one that promises to redefine its image and reshape India’s defence and aerospace industry.

Uttar Pradesh’s Revolutionary Defence Industrial Corridor

The fulcrum of this transformation is the Uttar Pradesh Defence Industrial Corridor (UPDIC), an ambitious initiative that seeks to propel India onto the global stage of defence and aerospace manufacturing. From significant investment opportunities to the strategic location, world-class infrastructure, and dynamic policy framework, UPDIC is a beacon of immense potential that offers unparalleled benefits to the global defence sector.

The Defence Industrial Corridor project in the state was conceptualised during an investors’ summit in February 2018. The Union Government sanctioned defence corridors for Uttar Pradesh and Tamil Nadu, envisaging a new era of indigenous manufacturing of military goods. Today, Uttar Pradesh has emerged as one of the frontrunners in this mission, making significant strides towards becoming a defence manufacturing powerhouse in India.

CM Yogi Adityanath’s Dynamic Leadership

The engine powering Uttar Pradesh’s metamorphosis into a major hub for aerospace and defence investment is none other than its Chief Minister, Yogi Adityanath. A dynamic leader with a visionary approach, he has been instrumental in propelling the Uttar Pradesh Defence Corridor project across six strategic nodes within the state: Agra, Aligarh, Lucknow, Kanpur, Chitrakoot, and Jhansi.

The state’s administration is playing a key role in shaping the state into a destination of choice for domestic and global investors.

The transformative approach of CM Yogi Adityanath-led government has positioned it as an emerging powerhouse in the country’s economy. By focusing on sectors such as infrastructure, information technology (IT), agriculture, and manufacturing, the state has achieved a significant increase in its Gross State Domestic Product (GSDP), providing a strong foundation for its burgeoning defence and aerospace industry.

A Grand Endeavour

The UPDIC project, sprawling across the western, central, and Bundelkhand regions of Uttar Pradesh, is an ambitious undertaking. This initiative, involving a proposed investment of INR 21237.60 crore, exemplifies the administration’s unwavering dedication to transforming the state’s industrial landscape.

This commitment is visible in the swift and seamless execution of the project. Prime Minister Narendra Modi inaugurated the Aligarh node in 2021, and development bids for four nodes were invited shortly after the 2023 Assembly poll results, indicating CM Yogi Adityanath-led government’s steadfast commitment to progressing the initiative.

PM Modi alongside CM Adityanath going through a miniature of the the UPDIC; File photo

Policy Initiatives: Creating A Conducive Business Environment

One of the core strengths of Uttar Pradesh’s growth story is the proactive and investor-friendly policy framework it has developed. The government has introduced numerous policy initiatives aimed at streamlining business processes, facilitating ease of doing business, and incentivising investment. 

The government is offering a capital subsidy of seven percent (upto INR 500 crore) to all aerospace and defence units setting up in Aligarh, Agra, Lucknow, and Kanpur nodes. Investors in the Jhansi and Chitrakoot nodes can avail a capital subsidy of 10 percent (upto INR 500 crore) to investors in Jhansi and Chitrakoot nodes.

A land subsidy of 25 percent will be provided for Anchor aerospace and defence units setting up in UPDIC. Alongside these, transport subsidies for Anchor units and incentives related to the transfer of technology are also in place.  

The Uttar Pradesh government is also providing reimbursement for Effluent Treatment Plant (ETP) setup by units, patent registration fees, and trademark registration application fees. The state will provide financial assistance to MSME units to obtain quality certification and cover the cost of basic infrastructure development provided at the nodes of UPDIC.

The state government has also established a single-window system to expedite approval processes for industries. 

These initiatives, which have significantly reduced bureaucratic hurdles and created a business-friendly environment, will save investors’ time and resources and ensure swift project implementation.

Superior Connectivity & Infrastructure

There are a total of 16 domestic and five international airports. The extensive railway network offers 8,949 kilometres of train connectivity serving the UPDIC.

Further, the Defence Industrial Corridor is strategically aligned with road transport infrastructure. It has direct connectivity to Delhi and Kolkata. For further seamless transportation facility, there will be six expressways, namely the Yamuna Expressway, Agra – Lucknow Expressway, Purvanchal Expressway, Bundelkhand Expressway, Gorakhpur Link Expressway, and Ganga Expressway. 

Apart from that, each node of the defence industrial corridor has been meticulously planned and equipped with the necessary infrastructure and logistics to facilitate the smooth movement of goods and resources. This thoughtful layout plays a critical role in reducing operational costs. It showcases the Uttar Pradesh government’s commitment to creating a business-friendly environment and enhances the state’s allure as an aerospace and defence investment hub. 

UPDIC is a clarion call for investments; File Photo

Attracting National & International Interest

UPDIC’s potential has not gone unnoticed. Several companies, both domestic and international, have been quick to leverage the opportunities it presents. The likes of BrahMos Aerospace, Adani, Tata Technologies, Ancor Research Labs, and Aerolloy Technologies have upcoming projects in the corridor. 

Apart from this, Defence Public Sector Undertakings (DPSUs) such as Bharat Electronics Limited and Hindustan Aeronautics Limited, among others, also have a presence in the state.

As part of the Defence Corridor project, the Uttar Pradesh government has signed 133 Memorandums of Understanding (MoUs), of which 108 are industrial MoUs, and 25 are institutional MoUs. Over 577 hectares of land have already been allotted to 36 industries, which have cumulatively proposed an investment worth INR 4661.38 crore. Such a huge influx of investment showcases the immense faith industries have in this endeavour.

Forging Strong Academic Collaborations

Uttar Pradesh is home to a plethora of academic and research institutions. In March 2023, the state government extended an MoU with two of the nation’s premier technical education institutes, the Indian Institute of Technology (IIT) Kanpur and IIT-BHU, for three years. These esteemed institutions will act as knowledge partners. Collaborations between academia and industry have paved the way for groundbreaking research and technological advancements. These partnerships are promoting indigenous innovation and helping the state compete on a global scale.

Skilling & Employment: Transforming Uttar Pradesh’s Workforce

Another key focus area for the Uttar Pradesh government has been skilling and employment. The state has introduced initiatives such as the Uttar Pradesh Skill Development Mission (UPSDM), Skill Centres of Excellence (CoE), and re-energising the Industrial Training Institute ecosystem in the state to equip the state’s workforce with industry-relevant skills, and enhance their employability.

Uttar Pradesh has also scaled up the state component under Pradhan Mantri Kaushal Vikas Yojana (PMKVY). It has been successful in implementing the Skill India Mission as well.

A well-trained and skilled workforce will not only help attract investment but also ensure the sustainable growth of industries in the state. It will also significantly contribute to job creation, fostering economic growth and social development.

Environmental Sustainability: Balancing Growth & Conservation

While the state has embarked on a rapid industrialisation drive, it has also prioritised environmental sustainability. The state government is implementing several green initiatives to ensure that industrial growth does not compromise the state’s natural resources. These initiatives focus on promoting cleaner technologies, resource-efficient processes, and renewable energy, striking a balance between economic development and environmental conservation.

The Future: Continuing The Growth Trajectory

Looking ahead, Uttar Pradesh is poised to continue its growth trajectory. With its strategic location, robust infrastructure, strong policy framework, and able guidance, the state is uniquely positioned to become a leading player in India’s defence and aerospace industry.

As the UPDIC takes shape, it will undoubtedly become a landmark project, signalling India’s ascent in the global defence manufacturing landscape. It promises to be a game-changer not just for Uttar Pradesh, but for the entire country, by boosting defence manufacturing, promoting self-reliance, and creating numerous job opportunities.

The UPDIC, a testament to the progressiveness and determination of the state government, represents the state’s future – a future where it stands at the forefront of India’s industrial revolution. It invites you to be part of this transformative journey and invest in the Uttar Pradesh Defence Industrial Corridor – a gateway to India’s defence manufacturing future.

Proactiveness: Creating Change

A key aspect of UP’s transformation has been the proactiveness of the government in developing and implementing meticulously designed policies. The administration’s approach has been one of creating change instead of waiting for change to happen and merely reacting to it. This effort’s impact is visible in the way initiatives are streamlining business operations and attracting investments.

The Journey Ahead

The land allotment process in the Aligarh node is already completed, and infrastructure development is well underway in the other nodes. However, this state government is not content to rest on its laurels. It is determined to maintain its momentum and continue to attract investment.

Uttar Pradesh: The Sky Is The Limit

While UPDIC is undoubtedly a significant development in the defence and aerospace sector, the rapid and robust growth in the civil aviation sector is equally noteworthy and deserves attention.

Over the last few years, Uttar Pradesh has taken significant strides to establish itself as a prominent hub for civil aviation in the country. With as many as nine operational airports, the state now boasts one of the most extensive air travel networks in the country. Noida International Airport (NIA), under construction in Gautam Buddha Nagar, is set to be Asia’s largest airport, increasing the state’s air connectivity manifold.

Under the vision and leadership of CM Yogi Adityanath, Uttar Pradesh has unlocked the potential of its civil aviation sector and is rapidly moving towards becoming a global aviation hub. There has been a significant surge in domestic and international flights, passenger traffic, and freight movement, highlighting the state’s capability to support large-scale aviation operations.

Investment Opportunities In Civil Aviation

The civil aviation sector’s burgeoning growth opens up multiple investment opportunities in various sub-sectors.

Airport Infrastructure: The upcoming Noida International Airport, along with the ongoing modernisation of existing airports, opens up substantial opportunities for investment in airport infrastructure. It includes terminal buildings, cargo complexes, maintenance, repair and overhaul (MRO) facilities, and ground handling services.

Aerospace Manufacturing: Uttar Pradesh offers immense potential for aerospace manufacturing, including aircraft, helicopters, drones, and their components. The state government provides attractive incentives for setting up manufacturing units, thereby promoting investment in this sector.

Aviation Services: The surge in passenger traffic and increased number of flights has led to a rise in demand for aviation services. Investment opportunities in ground handling services, air freight services, air taxi services, and aviation training institutes are aplenty.

Aviation Skill Development and Training: As the civil aviation sector expands, the demand for skilled manpower also increases. Investment in aviation training institutes, skill development centres, and simulators can provide the necessary training to the youth, creating a skilled workforce for the sector.

In its quest to establish Uttar Pradesh as a global aviation hub, the state government has formulated favourable policies to attract investment. The Uttar Pradesh Civil Aviation Promotion Policy, 2017 focuses on infrastructure development, ease of doing business, skill development, and sustainable development in the civil aviation sector.

In line with the policy, the government offers various incentives to investors, such as capital investment subsidies, interest subsidies, and stamp duty exemption. Furthermore, the government is also promoting Public-Private Partnerships (PPP) for the development of airport infrastructure.

These comprehensive measures taken by the state government make it an attractive investment destination for the civil aviation sector. By capitalising on these opportunities, businesses can not only achieve profitable growth but also contribute significantly to the state’s economic development.

In the end, the Uttar Pradesh government, under CM Yogi Adityanath, has made significant efforts to foster a favourable investment climate. The ongoing developments in both the defence and civil aviation sectors serve as a testimony to this. With these growth strategies, Uttar Pradesh is set to script a new chapter in India’s industrial development story.

A Glorious Rise

The indomitable leadership of Chief Minister Yogi Adityanath proves instrumental in charting an innovative path for Uttar Pradesh, simultaneously propelling UPDIC and the state’s burgeoning civil aviation industry towards unprecedented expansion. The UPDIC, in its essence, emerges as a testament to the state’s preparedness for industrial metamorphosis, while the significant advancements in civil aviation underscore another facet of Uttar Pradesh’s unfolding development narrative. 

Together, these initiatives construct a mould for Uttar Pradesh’s future, reinventing its economic and industrial persona, and fostering an environment conducive to investment. By seamlessly integrating potent policy strategies with infrastructural enhancements, Uttar Pradesh is metamorphosing into a significant force in aerospace, defence, and civil aviation. This transformative odyssey situates Uttar Pradesh as a pivotal architect of India’s pursuit of self-reliance, shining as a beacon of progress on the global stage.


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