Gujarat Government Plans to Set Up Defence Corridor

GANDHINAGAR: The Gujarat government has chalked out a blueprint to develop a defence corridor in the state. The defence corridor will be a dedicated area where national and international defence sector companies will be invited to invest.
The government is expected to declare certain areas of Ahmedabad district (Dholera SIR), Surendranagar and Kutch and possibly a few parts in north Gujarat and coastal Saurashtra, as defence industries corridor.

A senior government official said, “There is ample scope for development of arms and ammunition in Gujarat. This includes manufacturing of defence vehicles and sophisticated defence equipment. However, we are yet to tap the right opportunities in the sector. The state government has been communicating with the government of India in this regard.”
Around 22 companies have got defence manufacturing licenses for Gujarat from the government of India, but most of them are awaiting long term orders from the central government to start their operations in the state. L&T has meanwhile started operations for its tank manufacturing plant at Hazira near Surat, the official added.

State’s Aerospace and Defence Policy 2016 has no takers
There has not been any substantial investment in defence and aerospace in the state although the government of Gujarat notified the Aerospace and Defence Industries Policy in 2016.
A senior official in the industry and mines department said that the government of India has not placed orders for a majority of companies who have got manufacturing licences in Gujarat. Also, the policy itself has not been publicised enough, the official said.

“We are yet to notify and develop plug-and-play facility for the defence & aerospace sector. We will have to notify 50-100 km unpopulated land for testing of guns, short distance missiles, etc. Before all these formalities are put into place, we cannot ask companies to invest,’’ the official said.
Under the policy, the government has proposed that land will be made available at 50% of ‘jantri’ rates for setting up units during the tenure of the policy, which is five years. A 100% rebate of stamp duty and registration charges levied on land purchased, has also been proposed. In addition, there will be an electricity duty waiver for a period of five years since the commencement of production.

Source:TOI

Image Courtesy: IT