Odisha CM launches Aerospace and Defence Manufacturing Policy

Bhubaneswar (Odisha) [India], Nov 4 (ANI): Odisha Chief Minister Naveen Patnaik launched "Odisha Aerospace and Defence Manufacturing Policy 2018", aiming to carry forward the process of industrialization through the promotion of aerospace and defence manufacturing enterprises, which is expected to generate employment opportunities.
To attract large investment in this sector in the state, the policy proposed to extend subsidy up to 50 percent of the cost of land, Building, Plant and Machinery to the special purpose vehicle (SPV) for setting up the first state-of-the-art Aerospace and Defence Park in the State.
According to this new policy, the ceiling will be Rs 50 crore for Common Facility Centre, 30 crore for Technology Innovation Centre and Rs. 25 crore for Testing to be established with private participation.
The policy will also provide capital grants of 50 percent of the infrastructure cost limited to 10 crore for subsequent aerospace and defence parks.
It will also extend a capital subsidy of Rs. 100 crore for the first three OEMs (Original Equipment Manufacturer) for setting up manufacturing facilities in the state with an investment of at least Rs. 1000 crore and generating 1000 domiciled employment.
In addition, for the first three OEMs units in the state, interest subsidy will be allowed up to Rs 10 crore per annum and Rs 5 crore per annum, based on investment in plant and machinery for an amount of more than Rs 500 crore and between Rs 100 to Rs 500 crore, respectively.
The state government will also give an interest subsidy to new A&D manufacturer for timely payment at the rate of 5 percent per annum on term loan avails from public financial institutions for a period of five years, to a total limit of Rs 10 lakh for micro, 20 lakh for small, 40 lakh for medium, and. Rs 1crore for non-MSME units.
This new provision is designed to attract the key players to set up the Unit in the state,
Besides, the enterprises to come up in the industrially backward districts namely Kandhamal, Gajapati, and Mayurbhanj along with KBK (Kalahandi-Bolangir-Koraput) districts will be extended additional incentives. (ANI)