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.
It has proposed to extend subsidy up to 50% of the cost of land, building, plant and machinery to the SPV setting up the first state-of-the-art Aerospace and Defence Park in the State, with a ceiling of Rs. 50 crores for Common Facility Centre, Rs. 30 Crore Technology Innovation Centre and Rs. 25.00 Crore for Testing Centre, established with private participation.
The policy provides capital grants of 50% of the infrastructure cost limited to Rs.10 Crore for subsequent Aerospace & Defence Parks.
It will also extend a capital subsidy of Rs. 100 crore for the first 3 OEMs setting manufacturing facilities in the State with an investment of at least Rs. 1000 crore and generating domiciled employment of 1000.
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 & Rs. 5 crore per annum, based on investment in Plant & 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.
Other units, will be entitled to 10% capital subsidy up to Rs. 50 crore, as per the policy.
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.