Bhubaneswar: Chief Minister Naveen Patnaik on Saturday launched Odisha Aerospace & Defence Manufacturing Policy-2018.
The policy aims to carry forward the process of industrialization through the promotion of aerospace and defence manufacturing enterprises, generate employment opportunities and promote value addition.
With a view to attract investment in aerospace and defence manufacturing in the State, the policy proposed to extend subsidy upto 50 per cent 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.
As per the new policy, the ceiling will be 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.
The policy also provides capital grants of 50% of the infrastructure cost limited to Rs10 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 investment of at least Rs 1000 crore and generating 1000 domiciled employment.
In addition, for the first three OEMs setting up manufacturing units in the state, interest subsidy will be allowed up to a limit of 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 crore to Rs.500 crore, respectively.
This provision is designed to attract key players to set up units in the state, which in turn will provide the impetus for further development of ancillary and downstream units in the state, said an official
Besides, the enterprises to come up in the industrially backward districts namely Kandhamal, Gajapati and Mayurbhanj along with KBK districts will be extended additional incentives.
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Ms Kalinga