The Prime Minister’s visit to the Aligarh node of the upcoming Uttar Pradesh Defence Industrial Corridor has recently made headlines. This project was originally unveiled by the same Prime Minister during the UP Investors Summit in Lucknow in 2018. Apart from Uttar Pradesh, the government has also set up another Defence Industrial Corridor in Tamil Nadu.
Main Objective of the UP Defence Industrial Corridor
The key goal of the Uttar Pradesh Defence Industrial Corridor is to reduce India’s foreign dependence in the Aerospace and Defence Sector. The corridor will include six nodes – Aligarh, Agra, Kanpur, Chitrakoot, Jhansi, and Lucknow. Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) is the primary agency responsible for executing this project in collaboration with other state agencies. This corridor is expected to transform the state into one of the world’s largest and most advanced defence manufacturing hubs.
Distinctive Features of the UP Defence Industrial Corridor
The corridor offers several standout features. Defence and Aerospace (D&A) manufacturing units will benefit from streamlined approval and clearance procedures through Nivesh Mitra. This portal was launched by the Uttar Pradesh Government to improve the Ease of Doing Business in the state. Other features include flexible employment conditions, simple incentive reimbursement procedures, assured water supply, uninterrupted electricity, and accessibility via a four-lane heavy-duty highway.
The Choice of Uttar Pradesh for the Defence Corridor
Uttar Pradesh, being India’s fourth-largest state and third-largest economy, was considered ideal for the Defence Corridor. With over 200 million residents, it offers a vast labour force, ranks among the top five Indian manufacturing states, and is home to the highest number of Micro, Small & Medium Enterprises (MSMEs). The state also holds the second position in Ease of Doing Business (EoDB).
An Overview of Defence Corridors
A defence corridor refers to a route or path where domestic defence equipment production is concentrated to enhance the operational capability of the defence forces. It promotes self-reliance in defence production, supports the ‘Make in India’ initiative, reduces imports, and boosts exports. However, several challenges exist, including technological advancements in defence, meeting industry expectations, low involvement of private players, and a shortage of skilled human resources.
Tamil Nadu Defence Industrial Corridor
The Tamil Nadu Defence Industrial Corridor includes Chennai, Tiruchirappalli, Coimbatore, Salem, and Hosur. Since its inauguration in 2019, this corridor aims to establish new defence production facilities and promote clusters supported by testing and certification facilities, export facilitation centres, technology transfer services, among others.
The Way Forward
The success of these projects relies heavily on addressing various factors such as ‘Make in India”s efficacy, attracting investments, generating employment, supporting the growth of the manufacturing sector, and promoting technological development. To achieve these goals, it is crucial to establish the right infrastructure, a vibrant supply chain network, enhance skill development, and encourage the participation of national and global players for capital and viable project inflow. The development of comprehensive roadmaps considering existing capabilities, requirements, technologies, capital, and infrastructure is also important.
