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Defense Industrial Corridor in UP

Recently PM Narendra Modi had announced that his government has planned to establish a Rs 20,000 Crore Defense Industrial Production Corridor which includes Bundelkhand region. It is a region divided between Uttar Pradesh and Madhya Pradesh.  This project will generate 2,50,000 jobs and will result in development of one of the most impoverished regions of the country. Two defense industrial production corridors have been planned, one in Tamil Nadu and one in UP. Six Nodal Points have been identified for UP Corridor. These are Agra, Aligarh, Lucknow, Kanpur, Chitrakoot and Jhansi. UP Corridor will be built on existing defense production facilities. The corridor will create a supply chain of MSMEs and manufacturers, and testing and export facilitation centers.

Defense Industrial Corridor in UP – Budget 2018

Aim of Defense Industrial Corridor in UP

  • Expanding the Ordnance factories in the state
  • Mobilizing Private investments
  • Mobilizing the SME ecosystem in the state
  • Bridging the market gaps and connect the ancillary units in the state to meet the requirements of Defense PSUs
  • Developing the export oriented manufacturing base for defense sector
  • Defense Park at Jhansi, Agra and Kanpur
  • Aerospace Park at Lucknow, Kanpur and Agra
  • Expansion of Defense Public Sector Units (DPSU)
Advantages for Industries in UP

Proposed Defense & Aerospace Manufacturing (D&A) Policy

  • Attracting Defense PSUs, Mega and Anchor projects
  • Promoting development of Private Defence Parks with plug & play facilities
  • More incentives are offered for investments made in Defense Corridor
  • Promoting Investments in Bundelkhand & Poorvanchal
  • Supporting industry specific incentives including rebate on freight and transportation charges, for developing R&D and testing facilities, capacity building, towards patent & registration fee is also offered
  • Quality power supply
  • Easy labor permits
  • Simplified procedures
  • Single window
  • Industrial security
UP Defense Industrial Corridor for Defense Equipment

Government Action for Defense Industrial Corridor

CM Yogi Adityanath Ji is taking personal interest in industrial development of UP. The State Government has given an approval to the UP Defense, Aerospace Unit and Employment Promotion Policy 2018. The Defense Industrial Corridor has the potential to attract investment of around Rs 50, 000 Crore and generate jobs for 2.5 Lakhs people in next five years. The state Cabinet also approved a proposal to seek loans from banks to the tune of Rs 12,000 Crore for Purvanchal Expressway. Around 3,000 hectare land has been identified by UP Expressways Industrial Development Authority, and its acquisition is proposed.

Almost 93 per cent land acquisition has been done (except in Lucknow). Pillars have been put up at every 50 meters. More than 11,800 pillars have been installed on the boundary of the expressway for identification purpose. The time-frame for construction is 36 months, but UP Government efforts will be to construct this in 24-26 months. PNB has been made the lead bank.
Stakeholder interactions have already been held in Lucknow, Kanpur, Agra and Jhansi. There has been huge response from the industries in and around these locations. The government has proposed that industries can offer suo motto proposals for defense solutions. Startups and MSMEs can show their innovative products to the Defense Ministry. After required tests are completed, the government is ready to buy those products. Government has assured to give orders for minimum 10 years.
Defense Public Sector Undertakings (PSU) have taken the lead in investing in the Uttar Pradesh Defense Industrial Corridor. Both Public and Private sectors are being encouraged to invest in this project.

Investment by HAL in the corridor

Hindustan Aeronautics Ltd has become the top investor in UP corridor. Around Rs 1200 Crore has been invested. It will create local employment during next 25 years. Following are some of the details: –

  • Rs 700 Crore has been invested in Lucknow for the Tejas Light Combat Aircraft and upgrade of the Sukhoi fighters.
  • Rs 200 Crore has been invested in Korwa which is related to Tejas and Sukhoi.
  • Rs 200 Crore has been invested in Kanpur for transport aircraft related items.
  • Additional amount of Rs 30 Crore has been invested in Naini Aerospace Ltd. It is a subsidiary of HAL. Harnesses for the Light Combat Aircraft and the Dhruv Advanced Light Helicopter are made here.

Other Investments in UP Corridor

  • OFB (Ordnance Factory Board) has committed Rs 1076 Crore project investments in the next five years in the UP corridor.
  • Bharat Forge has announced investment of Rs 200 Crore for setting up an ammunition factory.
  • MKU has announced investment of Rs 900 Crore in Electro Optic Facilities in Noida. It intends to upgrade its armor facility and plans to manufacture small and large caliber arms in Kanpur.

List of Prominent Ordnance Factories in UP

  • Ordnance Factory, Kanpur
  • Small Arms Factory, Kanpur
  • Field Gun Factory, Kanpur
  • Ordnance Equipment Factory, Kanpur
  • Ordnance Parachute Factory, Kanpur
  • Ordnance Equipment Factory, Tundla
  • Ordnance Factory, Korwa
  • Ordnance Factory, Muradnagar, Ghaziabad
  • Ordnance Clothing Factory, Shahjahanpur

List of Prominent manufacturing units of HAL

  • HAL Transport Aircraft Division, Kanpur
  • HAL Accessories Division Lucknow
  • HAL Avionics Division Korwa
PM Modi Announces Defense Corridor in UP and Tamil Nadu


Click here to read Policy Details of Defense Industrial Corridor in UP

Article by Col P Chandra (Retd)

About the author

The author of this article is Col P Chandra (Retd). He is an ex EME Officer (Corps of Electrical & Mechanical Engineers). While in Army, the officer has been trained on various army equipments and technologies. Some of these are Communication Equipment (Wireless Equipment in common parlance), Artillery Guns, Gun Control Equipment of Tanks, Opto Electronics (Night vision devices etc) and Aviation Technology. The officer has also worked as GM (Production) in two of Army factories where army equipment are overhauled. Presently the author lives in Noida, UP.

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