Source: News Bharati English05 Mar 2017 12:00:05
Mumbai, March 5: In order to attract an investment of $5 billion and create 100,000 jobs over the next five years Maharashtra government released a draft defense and aerospace policy on Saturday. Doing this the state becomes the first to unveil its own defense and aerospace manufacturing policy.
Under the ‘Make in Maharashtra’ initiative Chief Minister Devendra Fadnavis said that investment of $5 billion is expected in next five years in Pune, Nashik, Nagpur, Ahmednagar and Aurangabad. Along with Chief Minister Devendra Fadnavis, Defense Minister Manohar Parrikar was also present along with his Deputy Subhash Bhamre who said that he state government would float a special fund worth Rs 1,000 crore with the involvement of the state run Maharashtra Industrial Development Corporation (MIDC), IDBI, SBI Caps and other financial institutions to provide initial funding to investors. The special fund will provide comfort to investors to kick start their projects considering that defense and aerospace sector projects are highly capital-intensive.
Defense Minister Manohar Parrikar said that Maharashtra has good amount of defense manufacturing activity with 11 ordinance factories in state and having infrastructure for defense manufacturing in Pune, Nashik, Nagpur, Aurangabad and adjoining areas. He added that availability of skilled manpower, IT base and most importantly law and order situation in the state would be conducive to attract investment in this sector.
The government plans to provide incentives on VAT on service parts at the Nagpur MRO to make it as preferred choice for low-cost carriers. Fiscal and non-fiscal incentives will be provided to investors who set up aerospace and defense related R&D. Incentives will be provided to units for training cost to develop skilled human resources. Focus will be laid on imparting vocational training and provide support in up-gradation of industrial technology institutes (ITIs). This list of incentives also includes industrial promotion subsidy, exemption in electricity duty, stamp duty, entry tax and local body tax, waiver in VAT and CST.
CM Fadnavis said the defense and aerospace policy pays special attention on MSMEs that will form a critical cluster of suppliers to anchor units located in the region. Incentives will be given for their market development, quality certifications and patent registration.