Defence
Sector Highlights
- India is the largest importer of arms in the world – accounts for about 14%of the world’s arms imports
- Government of India is aiming to change this situation by promoting self-reliance and indigenisation
- With historical ordnance manufacturing sites of Katni, Jabalpur and Itarsi, and presence of companies like BHEL, L&T, Bharat Forge and Punj Lloyd, Madhya Pradesh provides ready-made ecosystem for defence manufacturing
Investment Opportunities
- Defence products manufacturing
- Supply chain sourcing opportunity
- Defence offsets
- Manufacture, Repair and Overhaul (MRO)
Policy Highlights
- Special concession on allotment of land subjected to minimum investment of INR5 bn – land available at the rate of 25% of the value till 50 acres
- Provision for sub-leasing land to the vendor units
- Reimbursement of stamp duty charges levied on land lease transfer or purchase of sick/closed or acquired/BIFR/AAIFR units to establish defence manufacturing units
- Financial incentives similar to mother unit are available to vendor units wherein 75% of vendor unit’s production is purchased by the mother unit
- Other incentives include Capital subsidy, Entry tax exemption, Electricity duty exemption, and Transfer subsidy
