1,000 acres slated for UP Defence Corridor; ₹3,500 cr investments expected

Jhansi node has emerged as the preferred destination for investors, with major proposals totalling about ₹1,700 cr

defence budget, national security
Uttar Pradesh plans to allot nearly 1,000 acres across defence corridor nodes, a move that could unlock ₹3,500 crore in fresh defence manufacturing investments. | Imaging: Ajaya Mohanty
Bhaswar Kumar New Delhi
2 min read Last Updated : Jan 16 2026 | 7:52 PM IST
Preparations are underway to allot nearly 1,000 acres of additional land across various nodes of the Uttar Pradesh Defence Industrial Corridor (UPDIC), a move expected to unlock investments of nearly ₹3,500 crore, the state government said on Friday.
 
A government release described the development as a major push to translate investment proposals into on-ground outcomes and to accelerate the state’s journey towards becoming a defence manufacturing hub.
 
“As per available proposals, the planned allotments could unlock investments worth nearly ₹3,500 crore, significantly strengthening Uttar Pradesh’s industrial ecosystem and defence production capabilities,” the release said.
 
The Jhansi node has emerged as the preferred destination for investors, with major proposals totalling about ₹1,700 crore. “These investments are expected to reinforce the government’s vision of developing Bundelkhand as a key defence industrial cluster,” the release said.
 
In Chitrakoot, defence public sector undertaking Bharat Electronics Limited has proposed an investment of ₹672 crore, while IG Drones is planning a ₹100 crore investment in drone technology. The state government said that, once realised, these investments would mark “a significant step towards positioning Chitrakoot as a defence electronics and drone technology hub”.
 
The Uttar Pradesh Expressways Industrial Development Authority has confirmed that adequate land is available within the UPDIC to support forthcoming investments, the release said, adding that the land allotment process is being carried out in accordance with the requisite approvals and procedures.
 
According to Department of Defence Production data, the UPDIC has attracted investment proposals worth ₹38,176 crore. As of the end of calendar year 2025, the actual amount invested stood at ₹4,304 crore, against a 2025–26 investment target of ₹10,000 crore.

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Topics :Uttar PradeshDefence boostDefence corridorUP Defence CorridorDefence Production Policy

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