State PolicyActiveUttar Pradesh

Uttar Pradesh Defence and Aerospace Unit and Employment Promotion (Amendment) Policy 2022

Amends the 2018 framework to offer a massive back-ended capital subsidy of 7% in general areas and 10% in the Bundelkhand region on eligible fixed capital investments, capped at ₹50,000 Lakhs (₹500 Crore) per project. The policy targets defence and aerospace manufacturing units, particularly within the UP Defence Industrial Corridor nodes, with annual disbursements capped at ₹5,000 Lakhs.

Key Summary

Ministry / Authority
Industrial Development Section-6, Government of Uttar Pradesh
Incentive Type
Composite state package (capital subsidy + infrastructure support + land lease concessions)
Incentive Rate
Capital subsidy of 7% of EFCI in general areas (capped at ₹50,000 Lakhs); Capital subsidy of 10% of EFCI in Bundelkhand (capped at ₹50,000 Lakhs); Annual disbursement cap of ₹5,000 Lakhs; 100% infrastructure support (power, water, roads, peripheral wall) in Defence Corridor nodes.
Min. Investment
Application Deadline
Open

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