AEROSPACE AND DEFENCE MANUFACTURING POLICY 2015-2020
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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
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AEROSPACE & DEFENCE
Manufacturing Policy
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Key Policy Targets 2020
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Key Initiatives
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Establishment of Aerospace & Defence clusters for ecosystem development
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Permission to Aerospace and Defence manufacturing industry for 24x7 ( three shift operations ); employment of women in night shift
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A&D manufacturing industry declared to be a ‘Public Utility’ under the Industries Disputes Act, 1947
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Major Clusters / Parks
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Aerospace and Defence Park
(on PPP basis) in Anantapur and Chittoor/Nellore districts
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World-class
Maintenance, Repair and Overhaul (MRO)
facility as a part of proposed Bhogapuram Aerotropolis near Visakhapatnam
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Air Cargo complex near Visakhapatnam
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Aerospace and Defence industrial park in Palasamudram, Anantapur
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Key Fiscal Incentives
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Incentives
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Description
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BASIC INFRASTRUCTURE
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100% subsidy (not exceeding ₹6 crore) on basic infrastructure developed on under developed land purchased or leased from the government
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ENTRY TAX
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100% exemption on plant & machinery and capital goods for 3 years from commencement of commercial production (CoCP)
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VAT/CST/SGST
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100% reimbursement on all input material (excluding aviation turbine fuel) for aircrafts brought in specifically for MRO in Andhra Pradesh
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ANCHOR UNIT SUBSIDY
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₹10 crore for first 10 A&D OEM enterprises
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INCENTIVES FOR A&D PARK
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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
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R&D INVESTMENTS
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10% subsidy on R&D investments in defence above ₹10 crore, subject
to a maximum of ₹10 crore
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PATENT COST & QUALITY CERTIFICATION
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Reimbursement of Patent Cost (75% upto max. of ₹25 lakh) and Quality
Certification (50% of all charges upto max. of ₹5 lakh)
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INTERNATIONAL TRADE FAIRS
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Reimbursement of 50% of cost, upto a maximum of ₹5 lakh for 10 MSME
A&D units per year
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SKILL DEVELOPMENT
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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
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Existing Partners
Upcoming projects