Odisha government Saturday rolled out Odisha Aerospace & Defence Manufacturing Policy, 2018 ahead of the second edition of 'Make In Odisha Conclave' to be held here from November 11 to November 15.
The policy, which has been approved by the state cabinet, will be placed before investors at the conclave, an official said.
The policy aims at carrying forward the process of industrialisation through the promotion of aerospace and defence manufacturing enterprises, to generate employment opportunities and promote value addition, he said.
To attract investment in aerospace and defence manufacturing in the state, the policy proposed to extend subsidy upto 50 per cent of the cost of land, building, plant and machinery to the special purpose vehicle for setting up the first state-of-the-art Aerospace and Defence Park in the state, the official said.
The policy also provides capital grants of 50 per cent of the infrastructure cost limited to Rs 10 crore for subsequent aerospace and defence parks.
The policy will also extend a capital subsidy of Rs 100 crore for the first three OEMs (original equipment manufacturer) for setting up manufacturing facilities in the state with an investment of at least Rs 1000 crore and generating 1000 domiciled employment, the official said.
In addition, for the first three OEMs setting up manufacturing units in the state the interest subsidy will be allowed up to a limit of Rs 10 crore per annum and Rs 5 crore per annum based on investment in plant and machinery for an amount of more than Rs 500 crore and between Rs 100 crore to Rs 500 crore respectively.
This provision is designed to attarct key players to set up units in the state, which in turn will provide the impetus for further development of ancillary and downstream units in the state, he said.
New A&D manufacturing units shall be entitled to interest subsidy for timely payment at the rate of five per cent per annum on term loan availed from public financial institutions/banks for a period of five years from the date of commencement of production subject to a total limit of Rs 10 lakh for micro-enterprises, Rs 20 lakh for small enterprises, Rs 40 lakh for medium enterprises and Rs 1 crore for non MSME units, it said.
Besides, micro, small and medium units will have the support of reimbursement of the cost towards Employees' State Insurance and Employees' Provident Fund for employment of skilled and semi-skilled workers domiciled in the state. Provisions for other incentives such as land at concessional rate, exemption of premium for conversion of land an stamp duty, reimbursement State Goods & Service Tax (SGST) and others are proposed to be extended.
Besides, the enterprises to come up in the industrially backward districts of Kandhamal, Gajapati, Mayurbhanj along with the KBK (Kalahandi-Bolangir-Koraput) districts will be extended additional incentives, it said.
(With inputs from agencies.)