U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Land Benefits
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Land Cost
- Up to 80% land subsidy for foreign companies investing in the Defence & Aerospace (D&A) sector.
- For Anchor & Mega-Anchor units: 25% upfront land subsidy.
- 100% stamp duty exemption on land purchase/lease.
- More than 5,000 acres of fully developed land is earmarked across Aligarh, Agra, Kanpur, Lucknow, Chitrakoot, Jhansi nodes of UPDIC for defence manufacturing units.
- For Private Defence & Aerospace Parks:Land may be bought from UPEIDA or externally.
- Eligible for infrastructure development subsidy (see below).
Financial Assistance
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Capital Subsidy
- Capital Subsidy for D&A manufacturing units:
- 7% up to ₹500 crore for units in Agra, Aligarh, Lucknow, Kanpur nodes.
- 10% up to ₹500 crore for units in Jhansi and Chitrakoot nodes.
- Support for Anchor units includes capital subsidies and preferential land incentives.
- Government may extend customized financial packages for projects of strategic importance.
- Infrastructure subsidy for industrial park developers is also counted under financial assistance.
Human Resource Management
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Capacity Building
- Establishment of Common Facility Centres (CFCs) within the Defence Corridor to support startups, MSMEs, and manufacturing units.
- CFCs will provide:Testing, prototyping, small-batch production support.
- Assistance that indirectly boosts skills, technical capability, and workforce development in defence and aerospace sectors.
- While no direct “training subsidy” is listed, the policy supports human-resource development through ecosystem infrastructure.
Quality and Standards
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Certification Fee
- Reimbursement of quality certification fees for MSME/D&A units for obtaining mandatory or sector-specific certifications (subject to limits).
- Support for certifications such as defence-grade standards, aerospace quality compliance, and manufacturing-process certifications.
Patent And GI Tags
- 100% reimbursement of domestic patent registration fees for eligible D&A units.
- 75% reimbursement of international patent registration fees (subject to limits).
- Reimbursement of 100% trademark registration fees for D&A units (subject to per-unit annual limit).
- These benefits promote innovation, IP creation, and technology development in the defence sector.
Transport / Freight Cost
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Transport & Freight Reimbursement
- Exemptions / subsidies on transportation charges for Defence & Aerospace units as part of policy facilitation.
- Details vary by unit type and will be notified per project (based on public policy summaries).
Infrastructure Subsidy
U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Infrastructure Subsidy
- For Private D&A / Aerospace Industrial Parks : 10% back-ended infrastructure development subsidy, up to ₹10 crore, for parks developed on a minimum of 50 acres.
- For parks located in Bundelkhand region: Additional capital investment subsidy, up to ₹15 crore.
- UPEIDA provides core infrastructure in each node : 132 KVA power supply.
- Water supply.
- Road connectivity.
- Boundary demarcation and internal infrastructure.
