The Odisha government has unveiled its ‘Aerospace & Defence Manufacturing Policy’ laced with incentives and subsidies to attract the best of the companies in the sector.
The policy offers a capital subsidy of Rs 1 billion for the first three OEMs (Original Equipment Manufacturers) who set up their manufacturing facilities in the state, committing investments of at least Rs 10 billion and generating employment for not less than 1000 people. In addition, for the first three OEMs setting up manufacturing units in the state, interest subsidy will be allowed up to a limit of Rs 100 million per annum and Rs 50 million per annum, based on investment in plant & machinery for an amount of more than Rs five billion and between Rs one billion and Rs five billion respectively. This provision is designed to attract key players to setup units in the state, which in turn will provide impetus for further development of ancillary and downstream units in the state. Other units will be entitled to 10 per cent capital subsidy up to Rs 500 million, as per the policy.
The policy proposes to extend subsidy of up to 50 per cent of the cost of land, building, plant and machinery to the special purpose vehicle (SPV) setting up the first state-of-the-art aerospace and defence park in the state. The subsidy is applicable with a ceiling of Rs 500 million for common facility centre, Rs 300 million for technology innovation centre and Rs 250 million for testing centre established with private sector participation. The policy also provisions capital grants of 50 per cent of the infrastructure cost limited to Rs 100 million for subsequent aerospace & defence parks.
Besides, micro, small & medium units will have support of reimbursement of cost towards ESI (Employees State Insurance) & EPF (Employee Provident Fund) for employment of skilled and semi-skilled workers domiciled of the state. Provisions for other incentives such as land at concessional rate, exemption of Premium for conversion of land & stamp duty and reimbursement of State Goods & Service Tax (SGST) are proposed to be extended.