Lucknow-Unnao may be seventh node on defence corridor

LUCKNOW: Lucknow-Unnao could be notified as the seventh node in the UP defence corridor. Officials have sent a proposal to this effect to UP Expressways Industrial Development Authority (UPEIDA) and have also identified around 55 hectare land in Hasanganj tehsil of Unnao.
“Currently, there are six nodes and we believe that a seventh one in Lucknow-Unnao should also be notified. We have identified land for it in Hasanganj tehsil, and have submitted a proposal to UPEIDA,” said Jagatraj Tripathi, adviser to UP government on defence corridor.
The already notified nodes include Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Jalaun. Land acquisition has already started in these nodes and more than 90% has already been acquired in Jhansi and Chitrakoot.
Sources said that land allocation is expected to start in September, once the existing defence and aerospace manufacturing policy is revised. Officials said that efforts are on to bring the policy at par with that of Tamil Nadu, the second state where a defence corridor is proposed.
The modified policy aims to push development of defence and aerospace parks in the state. It proposes a capital subsidy for development of these parks at 10% of eligible fixed assets, subject to a maximum of Rs 10 crore, provided that the park is developed in a minimum area of 50 acres. An additional capital subsidy of 50% will be given for parks being set up in Bundelkhand.
“The proposed changes are in line with Tamil Nadu policy. The government will be giving options to investors to either set up a single unit or a park, like the existing IT Parks. Ancillary units like MSMEs manufacturing defence-related parts, operating and maintenance units and tier I-III manufacturing units can be set up,” said an official. So far, the government has not set any targets for single units or defence parks, he added.
The defence parks are high capital intensive and hence UP would have to ensure that its policy is like or better than Tamil Nadu’s to make it attractive for investors, the official said.
Under the existing policy, the incentives for defence parks are same as for setting up private industrial parks and there is no capital subsidy.