Lucknow, July 4 (KNN) The Uttar Pradesh Cabinet has approved the Defence Manufacturing Policy 2018 to promote defence corridor which is projected to spur an investment of Rs 50,000 crore and generate 2.5 lakh jobs in the state in next 5 years.

UP Chief Secretary Anup Chandra Pandey claimed that this defence manufacturing policy is one of the best policies of the country which will provide all financial and administrative assistance to the private and PSUs to invest in the state.

For setting up manufacturing hub in UP, the state focus will on Bundelkhand region but six districts-Aligarh, Agra, Jhansi, Chitrakoot, Kanpur and Lucknow will also be notified for the same, he added.

Adding that defence units would be given the land under plug and play formula, he said around 3,000 hectares of land would be acquired by the nodal agency UP Expressway Industrial Development Authority UPEDA.

Hinting several big proposals are in their kitty, the CS said that the entire land would be acquired by September next and work would start thereafter.

Briefing the media persons after the Cabinet meeting, Pandey said international consultants Price water house Coopers (PWC) have been given work to give a report on the Defence manufacturing potential areas in the state.

Sharing the details of 2 categories of investment under this project, he said in the first mega project Rs 1000 crore would be invested where the companies can built aircraft, tanks,choppers while the other one would be Anchor unit which will have investment of Rs 200 crore in Bundelkhand and Poorwanchal areas, Rs 300 crore in Madhayanchal and Rs 400 crore in western UP.

"Investments below this would get all benefits under the MSME policy in the state," he added.

Talking about benefits, he said UP government will provide 25 per cent subsidy on the circle rate of the land purchased by the investors while transport subsidy of 50 per cent or Rs 2 crore per year would be given for importing equipment. "

Transport subsidy would also be given on finished goods for export to the tune of 30 per cent or Rs one crore per year," he added.

The government will provide subsidy on technology transfer, setting up of affluent treatment plant, setting up labs for quality control and patenting.

Besides, 100 % subsidy will be provided on quality certification and trade mark, he said.

For quality certification it will be Rs 2 lakh per certification and for trade mark it will be Rs one lakh per certification, Pandey added.

The government will provide 100 per cent subsidy for stamp duty in Bundelkhand and Poorwanchal, 75 per cent in other areas while in Gautambuddha Nagar and Ghaziabad it will be 50 per cent, Pandey said while adding that there would be 70 per cent rebate on state government sales tax.

Besides, the government will bear 5 per cent or Rs 20 crore per year as the interest on capital loan by the companies while they would be given 5 per cent interest subsidy on investment loan, 5 per cent on interest on loan on research work and 100 per cent subsidy for 10 years on electricity duty.

The government will also provide 50 per cent subsidy on interest for seven years on the investors who would set up defence manufacturing parks.