Uttar Pradesh is all set to become AtmaNirbhar in the manufacturing of defence equipment in future. In the last three years, since the establishment of the UP Defense Corridor was announced, the state government has received proposals from around 55 large companies in the defence sector.
According to an official release issued by the state government on August 4, 2021, the Uttar Pradesh Expressway Industrial Development Authority (UPEIDA) has allotted 55 acres of land to 19 firms. These firms will set up their manufacturing units at a cost of Rs 1,245 crore and provide employment to thousands of people.
Uttar Pradesh Defence Corridor
The Uttar Pradesh Defence Corridor is being set up by the Uttar Pradesh Expressway Industrial Development Authority (UPEIDA). The establishment of the Industrial Defence Corridor was announced by Prime Minister Narendra Modi at the Investors Summit in 2018. Lucknow, Chitrakoot, Jhansi, Agra, Kanpur and Aligarh were identified as Defense Corridor nodes.
29 companies submitted proposals for Aligarh Node
The official release said, “In all, 29 firms had submitted their proposals for setting up their units at the Aligarh node. These firms in their proposals, sent to the government, had also requested the allotment of land for this. A total of 6, 8 and 11 defence companies have purchased land from the state government to set up their factories in Jhansi, Kanpur and Lucknow, respectively.
MoUs of Rs 50,000 crore signed in Lucknow DefExpo
In 2020, MoUs worth Rs 50,000 crore were signed by domestic and foreign companies in the defence sector, on the sidelines of the DefExpo in Lucknow. This was for investment in the Defence Corridor. Most of the MoUs are for the portion of the corridor that is under the Andla area of Aligarh, which is located on Khair Road and the rest is for the Lucknow node of the corridor.
Why government setting up defence corridors
- India is one of the top 5 military spenders countries and one of the emerging defence manufacturing markets in the world. Two Defense Industrial Corridors are being set up in India, one in Uttar Pradesh and the other in Tamil Nadu, to support the growth of the defence sector and increase manufacturing capacity in the region.
- Promoting Make in India, the Defence Industrial Corridors will catalyze indigenous production of defence and aerospace-related items. This will reduce India’s imports and encourage the export of these goods to other countries.
- The joint efforts of the government and private companies will help in achieving India’s goal of AtmaNirbhar in defence, creating direct and indirect employment opportunities and growth of private domestic manufacturers, Start-ups and Micro Small and Medium Enterprises (MSMEs).
Companies who will be investing in Uttar Pradesh Defence Corridor
- Companies including Anchor Research Lab LLP, which is planning to invest Rs 550 crore, has been allotted 10 hectares of land. In addition, 10 hectares of land has also been allotted to Sadicate Innovation International who is investing Rs 150 crore.
- Jai Sai Anu Overseas, which is planning to set up its unit at Rs 100 crore, has been allotted 4.5 hectares of land. Milker Defense Pvt Ltd is investing Rs 98.25 crore and getting allotment of four hectares of land to set up its unit.
- Tractors Auto Dynamics has been allotted two hectares to set up its unit and has made an investment of Rs 40 crore.
- In addition, land has been allotted to Cobra Industries, Veriwin Defense Pvt Ltd, P-2 Logitech, Allen & Elven, Nitya Creation India, PBM Insolation Pvt Ltd, Deep Explo Equipment Pvt Ltd, Advance Fire and Safety, and Crimson Energy Exports, to set up their factory.
- The process of allotment of land in the Aligarh node has been completed and 4 lane road is being constructed at a cost of Rs 10.21 crore. The construction of powerhouse and boundary wall is also underway.