Aerospace and Defence policy gets approval; to attract ₹45,000 cr. investment

The State Cabinet on Friday approved the Karnataka Aerospace and Defence Policy 2022-27 to attract investment of ₹45,000 crore in the next five-year period and extend concessions for investors in the sector.

The policy aims at attracting more investments and to establish Karnataka as the preferred investment destination for Aerospace and Defence manufacturing and promote development of indigenous and advanced technologies.

It is also aimed at promoting development of manufacturing facility for space-related applications, and developing world class-skilled manpower. It envisages support for MSMEs in the supply chain with increased technological access to be globally competitive in the sector.

The policy extended zonal-wise concessions for investors in the sector. In Bengaluru Zone, it says that the total incentives sanctioned to a unit should not exceed 40% of value of fixed assets (VFA) and and outside Bengaluru, it should not exceed 50% of VFA for a unit.

Earlier, the government formulated Aerospace and Defence Policy in 2013.

The policy said 25% of India’s aircraft and spacecraft industry is based in Karnataka; and 67% of all aircraft and helicopters manufacturing for defence services is done in the State. Karnataka contributed to 65% of the country’s aerospace related exports from India.

Chief Minister Basavaraj Bommai had announced the proposal on Karnataka Aerospace and Defence Policy 2022-27 in the State Budget for 2022-23.

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Printable version | Sep 3, 2022 10:44:11 am | https://www.thehindu.com/news/national/karnataka/aerospace-and-defence-policy-gets-approval-to-attract-45000-cr-investment/article65761447.ece