The Tamil Nadu government on Tuesday released the Aerospace and Defence Industrial Policy, 2022, which aims to attract investments of nearly ₹75,000 crore in the next ten years and create nearly one lakh jobs.
The policy, released by Chief Minister MK Stalin at the Conclave on Industry 4.0: The Future is Now — Towering Tamil Nadu, aims to catalyse the growth of the aerospace and defence (A&D) sector in the State, besides turning the region into a manufacturing and service hub for the sector.
The policy aims to make Tamil Nadu the preferred destination for investment, innovation, manufacturing and services in the A&D sector. Its mission is to attract global OEMs, tier-I suppliers and Indian majors as anchor units in the State by providing facilitation and support.
It intends to develop innovation centres and start-up hubs focused on the sector.
Project categories
According to the policy, new/expansion investment in A&D manufacturing in the State made from April 1, 2022, will be considered for incentives. The project categories are sub-large minimum investment (₹50-300 crore; standard investment period of four years and nil employment); large (₹300-500 crore; 4 years; 50 persons); mega (₹500-5,000 crore; 4 years; and 200 persons); and ultra-mega (₹5,000 crore and above; 7 years; and 500 persons).
The company can choose the incentive either from this A&D policy or from the special incentive for the sunrise sector offered under the Tamil Nadu Industrial Policy.
Projects can avail themselves of a fixed capital subsidy based on location (districts). Large and sub-large industries in A&D sector supplying to aerospace and defence majors will be eligible for reimbursement of up to 2 per cent of annual turnover arising from supply for five years from the date of commencement of operations, the policy said.
A&D manufacturing investment made from April 2022 in greenfield/expansion projects will be eligible for incentives in the sub-large and large projects category.
Validity
The policy supersedes the Tamil Nadu Aerospace and Defence Policy 2019 and is valid until the next revision or for four years (up to March 31, 2026), whichever is earlier.
Chief Minister Stalin also inaugurated the Tamil Nadu Advanced Manufacturing Centre of Excellence; Tamil Nadu Smart and Advanced Manufacturing Centre, and virtually launched the Remote Pilot Training Organisation units in Chennai and Madurai.
Published on November 8, 2022
