Chandigarh, May 6 – To spur industrial growth in Aerospace and Defence sector and to place emphasis on creation of end-to-end ecosystem for Aerospace and Defence sector development, State Cabinet which met under the Chairmanship of Chief Minister, Sh. Manohar Lal here today accorded approval Haryana Aerospace and Defence Production Policy, 2022 to attract investments of at least 1 billion USD and generate employment opportunities of around 25000 persons in five years and to position the state as country’s leading Aerospace and Defence Manufacturing Hub.
Since India has the third largest armed forces and the third highest Defence expenditure in the world and has spent approximately 3 percent of its GDP in 2020. Therefore, this Policy is needed to indigenize the Aerospace and Defence Production in the state that will help in building a domestic eco-system for the aerospace and defence industry.
The Policy envisages harnessing Haryana's inherent strength in auto components and automobile manufacturing sector that looks forward to a possible transition into Aerospace and Defence manufacturing across various aspects such as infrastructure augmentation, attractive fiscal incentives, human capital development, strengthening connectivity etc. to enhance Ease of Doing Business in the State.
Besides this, the Policy also envisages to leverage opportunities arising out of changes in the global economic order and aligning growth in the Aerospace and Defence Industry in the State with national initiatives such as the Atmanirbhar Bharat Mission.
Through this Policy, Haryana is committed to take various steps to support human capital development in the State such as curriculum development, research, and innovation scholarship program, setting up Aerospace and Defence University and flying schools amongst others.
This Policy will also address the need of creating one world-class MRO in Haryana. Growth in the aviation sector necessitates the development of adequate Maintenance, Repair and Overhaul (MRO) facilities for aircrafts operating in the country. The state government will facilitate and incentivize the proposals for the setting up of new MRO facilities at existing airports or at new locations in Haryana.
This Policy places a special emphasis on the development of the MSME sector and its business growth. It envisages bringing up a paradigm shift from being a regulator to a facilitator of MSMEs.
The State Government has undertaken several initiatives to assist the MSME sector in becoming globally competitive. The cluster development, enhancing market linkages and international collaboration, enhancing access to infrastructure and technology, regulatory simplification, infrastructure support and fiscal incentives are envisaged to provide an impetus to the growth of MSME sector in the State and to promote Entrepreneurship.
Fiscal Incentives offered under this Policy
Net SGST Reimbursement: 100 percent of Net SGST for 10 Years in D Category blocks with a cap of 125 percent of FCI. 75 percent of Net SGST for 8 Years in C Category blocks with a cap of 125 percent of FCI. 50 percent of Net SGST for 7 Years in B Category blocks with a cap of 100 percent of FCI.
Capital Subsidy: In categories B, C, and D blocks and in a radius of 10 KMs of all airstrips in Haryana (except Hisar Airport), 5 percent of Fixed Capital Investment (FCI) with a maximum Cap of Rs. 10 crores.
In Integrated Manufacturing Cluster, Hisar and in a radius of 10 KMs around Maharaja Agrasen Airport Hisar (MAAH), 5 percent of Fixed Capital Investment (FCI) with a maximum Cap of Rs. 20 crores.
Employment Generation Subsidy: The subsidy of Rs 48,000 per year shall be provided for all categories of employees with a salary of not more than Rs 40,000 per month in B, C and D Blocks.
Stamp Duty Reimbursement: Stamp Duty for A&D units in B, C and D Blocks shall be eligible for reimbursement of 100 percent stamp duty on sale/lease deeds after commencement of commercial production within 5 years from the date of purchase of land.
Electricity Duty Exemption: 100 percent exemption of Electricity Duty for 10 years in B, C and D Blocks.
Human Capital Development Support: A Credit Guarantee Scheme will be offered to the students pursuing Aviaton/ Aerospace related courses in Higher Education.
Research & Development Assistance: Financial assistance at the rate of 50 percent of project cost, subject to a maximum of Rs. 20 crores, shall be given to units registered with the Department of Scientific and Industrial Research to facilitate research and innovation, throughout the State.