Giving further impetus to Indian Aerospace and Defence sector, Gujarat has now come in front to draw a defence corridor in the State. The Gujarat Government has chalked out a blueprint to leverage a dedicated area for Indian and International defence sector. Giving the spur, under this new corridor global defence companies will be encouraged to establish, and setup in Gujarat.
The government has listed down certain areas of Ahmedabad district (Dholera SIR), Surendranagar and Kutch and possibly a few parts in north Gujarat and coastal Saurashtra, as defence industries corridor.
A senior government official said, “There is ample scope for development of arms and ammunition in Gujarat. This includes manufacturing of defence vehicles and sophisticated defence equipment. However, we are yet to tap the right opportunities in the sector. The state government has been communicating with the government of India in this regard.”
Just after the announcement, around 22 companies have got defence manufacturing licenses for Gujarat from the government of India. But mostly awaiting, long term orders from the central government to start their operations in the state. L&T has meanwhile started operations for its tank manufacturing plant at Hazira near Surat, a senior official noted.
There has not been any substantial investment in defence and aerospace in the state notified in Aerospace and Defence Industries Policy in 2016.
Under the policy, the government has proposed that land will be made available at 50% of ‘jantri’ rates for setting up units during the tenure of the policy, which is five years. A 100% rebate of stamp duty and registration charges levied on land purchased, has also been proposed.
In addition, there will be an electricity duty waiver for a period of five years since the commencement of production.