Defence corridor nets Rs 11,250-crore projects in Uttar Pradesh

The Uttar Pradesh government has bagged 93 investment proposals worth more than Rs 11,250 crore for the flagship defence corridor project.

The nodal agency, the UP Expressway Industrial Development Authority (UPEIDA), has signed memorandums of understanding (MoUs) with these private companies. The process of attracting more defence industry firms is underway.

While the government has so far acquired 1,600 hectares, about 30 companies have been allocated land for setting up their plants as part of the corridor. The UP Defence Corridor, which constitutes a vital cog in the country’s defence and strategic matrix, spans six nodes in the state — Lucknow, Kanpur, Jhansi, Aligarh, Chitrakoot, and Agra.

“Apart from the previously announced UP Defence and Aerospace Employment Promotion Policy, the state has made a few amendments to encourage private investment,” UPEIDA spokesperson Durgesh Upadhayay said.

The state government has tied up with leading commercial banks and financial institutions to promote the easy flow of funds to prospective investors.

Among the most prominent UP Defence Corridor projects is the Indo-Russian joint venture of BrahMos missile project in Lucknow. This is to develop next-generation supersonic missiles for the Indian forces. According to the state government, the Brahmos unit will be commissioned by 2025.  The Rs 300-crore BrahMos project will generate 5,500 fresh jobs. The ancillaries will create an additional 10,000 jobs.

The Yogi Adityanath government has allocated 200 acres for the BrahMos project on a lease of merely Rs 1, considering its importance for national security and for showcasing the state as a preferred destination for the defence manufacturing sector.

Meanwhile, the Adani group firm — Adani Defence & Aerospace — has signed an MoU with UPEIDA to develop South Asia’s largest integrated ammunition manufacturing facility in 250 acres at a cost of Rs 1,500 crore.

“Aligning with the vision to achieve defence hardware self-reliance, the project is going to prove as a landmark in the history of indigenous defence manufacturing,” UPEIDA CEO and UP Additional Chief Secretary Awanish Kumar Awasthi had earlier said.

The project is expected to be a key facilitator in India’s goal of achieving $5 billion exports in defence manufacturing. The ammunition complex will comprise state-of-art technology across small and medium caliber ammunition, and short-range air defence missiles.