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U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024

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Land Benefits

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Land Cost
  • Up to 80% land subsidy for foreign companies investing in the Defence & Aerospace (D&A) sector.
  • For Anchor & Mega-Anchor units: 25% upfront land subsidy.
  • 100% stamp duty exemption on land purchase/lease.
  • More than 5,000 acres of fully developed land is earmarked across Aligarh, Agra, Kanpur, Lucknow, Chitrakoot, Jhansi nodes of UPDIC for defence manufacturing units.
  • For Private Defence & Aerospace Parks:Land may be bought from UPEIDA or externally.
  • Eligible for infrastructure development subsidy (see below).
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Financial Assistance

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Capital Subsidy
  • Capital Subsidy for D&A manufacturing units:
  • 7% up to ₹500 crore for units in Agra, Aligarh, Lucknow, Kanpur nodes.
  • 10% up to ₹500 crore for units in Jhansi and Chitrakoot nodes.
  • Support for Anchor units includes capital subsidies and preferential land incentives.
  • Government may extend customized financial packages for projects of strategic importance.
  • Infrastructure subsidy for industrial park developers is also counted under financial assistance.
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Human Resource Management

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Capacity Building
  • Establishment of Common Facility Centres (CFCs) within the Defence Corridor to support startups, MSMEs, and manufacturing units.
  • CFCs will provide:Testing, prototyping, small-batch production support.
  • Assistance that indirectly boosts skills, technical capability, and workforce development in defence and aerospace sectors.
  • While no direct “training subsidy” is listed, the policy supports human-resource development through ecosystem infrastructure.
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Quality and Standards

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Certification Fee
  • Reimbursement of quality certification fees for MSME/D&A units for obtaining mandatory or sector-specific certifications (subject to limits).
  • Support for certifications such as defence-grade standards, aerospace quality compliance, and manufacturing-process certifications.
Patent And GI Tags
  • 100% reimbursement of domestic patent registration fees for eligible D&A units.
  • 75% reimbursement of international patent registration fees (subject to limits).
  • Reimbursement of 100% trademark registration fees for D&A units (subject to per-unit annual limit).
  • These benefits promote innovation, IP creation, and technology development in the defence sector.
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Transport / Freight Cost

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Transport & Freight Reimbursement
  • Exemptions / subsidies on transportation charges for Defence & Aerospace units as part of policy facilitation.
  • Details vary by unit type and will be notified per project (based on public policy summaries).
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Infrastructure Subsidy

U.P Aerospace & Defence Unit and Employment Promotion Policy - 2024
Infrastructure Subsidy
  • For Private D&A / Aerospace Industrial Parks : 10% back-ended infrastructure development subsidy, up to ₹10 crore, for parks developed on a minimum of 50 acres.
  • For parks located in Bundelkhand region: Additional capital investment subsidy, up to ₹15 crore.
  • UPEIDA provides core infrastructure in each node : 132 KVA power supply.
  • Water supply.
  • Road connectivity.
  • Boundary demarcation and internal infrastructure.
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