AEROSPACE AND DEFENCE MANUFACTURING POLICY 2015-2020

Key Highlights

  • 6 existing airports; 1 major and 3 no-frills airports planned
  • Eastern Naval Command HQ in Visakhapatnam
  • Presence of ISRO, Hindustan Shipyard, Bharat Electronics, and other defence PSUs
  • Upcoming naval shipbuilding facility by Reliance Defence at Rambilli, Visakhapatnam
  • Upcoming weapons integration facility in West Godavari district
  • Dedicated A&D park near Palasamudram, Anantapur district
  • Missile testing facility planned in Nagayalanka, Krishna district
  • World-class MRO facility and air cargo complex planned at proposed Bhogapuram Mega Aerotropolis

AEROSPACE & DEFENCE
Manufacturing Policy
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Key Policy Targets 2020

Key Initiatives

  • Establishment of Aerospace & Defence clusters for ecosystem development
  • Permission to Aerospace and Defence manufacturing industry for 24x7 ( three shift operations ); employment of women in night shift
  • A&D manufacturing industry declared to be a ‘Public Utility’ under the Industries Disputes Act, 1947

Major Clusters / Parks

  • Aerospace and Defence Park (on PPP basis) in Anantapur and Chittoor/Nellore districts
  • World-class Maintenance, Repair and Overhaul (MRO) facility as a part of proposed Bhogapuram Aerotropolis near Visakhapatnam
  • Air Cargo complex near Visakhapatnam
  • Aerospace and Defence industrial park in Palasamudram, Anantapur

Key Fiscal Incentives

Incentives

Description

BASIC INFRASTRUCTURE 100% subsidy (not exceeding ₹6 crore) on basic infrastructure developed on under developed land purchased or leased from the government
ENTRY TAX 100% exemption on plant & machinery and capital goods for 3 years from commencement of commercial production (CoCP)
VAT/CST/SGST 100% reimbursement on all input material (excluding aviation turbine fuel) for aircrafts brought in specifically for MRO in Andhra Pradesh
ANCHOR UNIT SUBSIDY ₹10 crore for first 10 A&D OEM enterprises
INCENTIVES FOR A&D PARK Subsidy of upto 50% of the cost of land, building, and plant & machinery, subject to a maximum of ₹25 crore for testing centre, ₹30 crore for technology innovation centre, and ₹50 crore for the common facility centre
R&D INVESTMENTS 10% subsidy on R&D investments in defence above ₹10 crore, subject to a maximum of ₹10 crore
PATENT COST & QUALITY CERTIFICATION Reimbursement of Patent Cost (75% upto max. of ₹25 lakh) and Quality Certification (50% of all charges upto max. of ₹5 lakh)
INTERNATIONAL TRADE FAIRS Reimbursement of 50% of cost, upto a maximum of ₹5 lakh for 10 MSME A&D units per year
SKILL DEVELOPMENT For in-plant training, the cost of training would be subsidised by way of offering stipend, upto 50% of the cost of training subject to ₹10,000/month per trainee

Existing Partners

Upcoming projects