Odisha Government launches Aerospace and Defence Manufacturing Policy 2018

Odisha Government launched Aerospace and Defence Manufacturing Policy 2018. The policy is aimed to carry forward process of industrialization through promotion of aerospace and defence manufacturing enterprises, generate employment opportunities and promote value addition.

Key Features of Polity

It proposes to extend subsidy upto 50% of cost of land, building, plant and machinery to special purpose vehicle (SPV) for setting up first state-of-the-art Aerospace and Defence Park in the state. This is to attract investment in aerospace and defence manufacturing in the State, the policy
It sets ceiling of Rs. 50 crore for Common Facility Centre, Rs. 30 crore for Technology Innovation Centre and Rs. 25 crore for Testing Centre to be established with private participation. It also provides capital grants of 50% of infrastructure cost limited to Rs. 10 crore for subsequent aerospace and defence parks.
It also extends capital subsidy of Rs. 100 crore for first three OEMs (original equipment manufacturer) for setting up manufacturing facilities in the state with investment of at least Rs. 1000 crore and generating 1000 domiciled employment.
In addition, it allows interest subsidy allowed up to a limit of Rs. 10 Crore per annum and Rs. 5 crore per annum for first three OEMs setting up manufacturing units in the state based on investment in plant and machinery for amount of more than Rs. 500 Crore and between Rs. 100 crore to Rs.500 crore, respectively.
This provision is designed to attract key players to set up units in the state. This will provide impetus for further development of ancillary and downstream units in the state. Enterprises will come up in industrially backward districts namely Kandhamal, Gajapati and Mayurbhanj along with KBK districts will be extended additional incentives.

Month: Current Affairs - November, 2018