Bhubaneswar: Chief Minister Naveen Patnaik Saturday launched the Odisha Aerospace and Defence Manufacturing Policy-2018, which aims for the promotion of aerospace and defence manufacturing enterprises.
It aims to carry forward the process of industrialisation through promotion of aerospace and defence manufacturing enterprises, generate employment opportunities and promote value addition. It has proposed to extend subsidy up to 50 per cent of the cost of land, building, plant, and machinery to the SPV setting up the first state-of-the-art Aerospace and Defence Park in the state with a ceiling of Rs 50 cr for common facility centre, Rs 30 cr for technology Innovation center and Rs 25 cr for testing centre established with private participation. The policy provides capital grants of 50 per cent of the infrastructure cost limited to Rs 10 cr for subsequent aerospace and defence parks.
The policy will also extend a capital subsidy of Rs 100 cr for the first 3 OEMs setting up manufacturing facilities in the state with investment of at least Rs 1000 cr and generating domiciled employment of 1000. In addition, for the first three OEMs setting up manufacturing units in the state, interest subsidy will be allowed up to a limit of Rs 10 cr per annum and Rs 5 cr per annum, based on investment in plant and machinery for an amount of more than Rs 500 cr and between Rs 100 cr to Rs 500 cr respectively. This provision is designed to attract key players to set up units in the state, which in turn will provide impetus for further development of ancillary and downstream units in the state. Others will be entitled to 10 per cent capital subsidy up to Rs 50 cr as per the policy.
New A&D manufacturing units shall be entitled to interest subsidy for timely payment at 5 per cent per annum on term loan availed from public financial institution / banks for a period of 5 years from the date of commencement of production subject to a total limit of Rs 10 lakh for micro enterprises, Rs 20 lakh for small enterprises, Rs 40 lakh for medium enterprises and Rs 1 cr for non-MSME Units.
Besides, micro, small and medium units will be able to avail reimbursement of cost towards ESI &EPF for employment of skilled and semi-skilled workers domiciled of the state. Other incentives such as land at concessional rate, exemption of premium for conversion of land and Stamp Duty, reimbursement of State Goods & Services Tax (SGST) etc shall also be extended.
Besides, the enterprises coming up in the industrially backward districts namely Kandhamal, Gajapati and Mayurbhanj along with KBK districts will be extended additional incentives.
PNN