Chandigarh, June 15 (KNN) The Haryana government has come out with a draft Aerospace and Defence Policy 2017 which aims to make the state thriving aerospace and defence manufacturing hub and also promote new MSME units dedicatedly for the two sectors.

The draft policy aims creating an enabling business eco-system for investors in the state and also promote new MSMEs in the Defence & Aerospace sectors.

A spokesman of the Civil Aviation Department said the policy objectives aimed at attracting orders for at least 15 per cent of all offset obligations discharged by companies in India by leveraging the existing ancillary base, and promoting new micro small and medium enterprises (MSMEs) dedicatedly for the A and D sector.

He said the policy will also help Haryana in becoming a “thriving” aerospace and defence manufacturing hub, and provide strategic direction for development of the sector in the next five years.

The policy has the warp and woof of incentives and concessions, highlighted the official and said it seeks to provide investors the vision and mission of making Haryana a prominent aerospace and defence manufacturing hub.

The government also wants to portray the state as a preferred Maintenance, Repair and Overhaul (MRO) and Fixed Base Operator (FBO) destination in the Asian region.

Suggestions from stakeholders will be sought before finalizing the policy.

The draft policy aims at attracting investment worth Rs 25,000 crore and creating direct employment for 32,000 people by 2020, he said.

The state plans to increase the share of industry in Gross State Domestic Product (GSDP) from 27 per cent to 32 per cent by leveraging this sector, the spokesman said.

It also aims to attract 50 per cent by value of MRO activities, the market size of which in India is estimated to be around USD 700 million, he said.

The concessions and incentives offered would include land at concessional rates; reimbursement of stamp duty and registration charge paid on sale or lease deeds on first transaction; exemption from open access charges up to Rs 1.77 per unit of power for five years and subsidy on the cost of land, building plant and machinery, the spokesman said. Haryana is committed to position itself as the country’s leading aerospace and defence manufacturing hub, and the state has a well-recognised manufacturing proficiency and state-of-the art infrastructure, he said.