Govt to woo aerospace, defence manufacturers

Tribune News Service

Chandigarh, June 14

The draft Aerospace and Defence Policy 2017 of the government seeks to roll out incentives and concessions for investors to make the state a hub of the aerospace and defence manufacturing industry.

A spokesman of the Civil Aviation Department today said the incentives and concessions were aimed at making Haryana a preferred investment destination in this segment, attracting investment of Rs 25,000 crore and creating direct employment for 32,000 persons by 2020.

Suggestions had been invited from various stakeholders, which would be duly factored in while cobbling up the final policy. Various concessions and subsidies would be provided under the policy.

The spokesman said mega units would be given preference in government land allotment. Ten per cent concession would be given for land in Gurugram district and 25 per cent outside Gurugram district.

Land would be made available by the HSIIDC, HUDA and government on a lease of 33 years with annual increase of 5 per cent, extendable by 33 years, he added.

Aerospace and defence units would be eligible for reimbursement of stamp duty and registration charge paid on sale or lease deeds on first transaction.

There would be 100 per cent reimbursement for units investing in districts other than Gurugram and 30 per cent for units investing in Gurugram. Hundred per cent reimbursement of registration charges would be applicable throughout the state.

Referring to power subsidy, he said all units would be eligible for exemption from open access charges up to Rs 1.77 per unit for five years. Graded interest subsidy would be provided for projects outside Gurugram at different rates specified.

Hundred per cent exemption in electricity duty would be provided for 10 years to units producing captive power. The exemption would be limited to power consumed for own operations, he said.

All units would be allowed reimbursement of up to 100 per cent of net value added tax, central sales tax or state goods and services tax paid for 10 years or up to realisation of fixed capital investment, whichever was earlier.

Freight subsidy of 100 per cent would be given for export of components or products manufactured in designated aerospace and defence park or cluster or zone.

Freight subsidy of 100 per cent would be given for transportation of components from component manufacturer defence unit to anchor unit within the state to balance the location disparity, the spokesman said.

Referring to eligibility, he said units for which any package of incentive had already been sanctioned under the Haryana Industrial Policy 2011 or under earlier policies would not be eligible.

Units which would commence commercial production and operations after the date of notification of this policy would be eligible.