Tamil Nadu Aerospace and Defence Industrial Policy
Tamil Nadu Aerospace & Defence Industrial Policy
The Government of Tamil Nadu has introduced the Aerospace and Defence Industrial Policy to promote aerospace and defence manufacturing enterprise in the State. The main objective of the Aerospace and Defence Industrial policy is to make TamilNadu the preferred hub for aerospace and defence industrial units in India in the areas of design, engineering, manufacturing and allied activities. In this article, we look at the TamilNadu Aerospace & Defence Industrial Policy in detail.
Objectives
The objectives of the TamilNadu Aerospace & Defence Industrial Policy are :
- To provide direct and indirect employment opportunities in the aerospace and defence sector.
- To develop a global workforce for manufacturing by establishing the centre of excellence, Research and Development and skill development institutions.
- To build an end to end system for the aerospace sector including design, engineering, manufacturing of aircraft for defence and civil industry.
Incentives
Under this policy, the aerospace and defence industries will be eligible for the incentives as specified below:
Subsidy for Skill Development
Under Skill Development subsidy, 100% cost of the technical training will be reimbursed for a year which is limited to a ceiling of Rs.10000 per trainees per month will be provided.
Note: Also, the companies can send the employees or trainees to skill development centres for imparting training and upgrading their skills.
Subsidy for Certification Process
Under subsidy for Certification Process, 50% of the cost of certification from Indian as well International bodies for multiple products and certificate will be provided which is subject toa maximum ceiling of Rs.25 lakhs per company for setting up their manufacturing units for the certified products in the State.
Subsidy for Allotment of Land
Under subsidy for Allotment of Land, any aerospace or defence industrial units that are allotted lands within 3 years from the date of release of the policy in the aerospace and defence parks or industrial parks promoted by TIDCO or SIPCOT will be provided with 20% concession on the actual land cost.
Anchor Unit Subsidy
Under anchor unit, the subsidy at the rate of 10% of the fixed assets, which is limited to the maximum amount of Rs.10 crores will be provided to first 10 aerospace and defence enterprise.
Capital Subsidy for Units
- Any new or existing aerospace and defence MSME industrial units with investment up to Rs.10 crores will be provided with capital subsidy at the rate of 10% on fixed assets in instalments for a period of 5 years.
- For aerospace and defence MSME industrial units other than anchor units with investment from Rs.10 crores to Rs.300 crore will be provided with capital subsidy at the rate of 5% on fixed assets in instalments for a period of 5 years.
- In addition to the above, the industrial units located in the Southern districts will be given an additional capital subsidy of 50% over the limit prescribed above.
Capital Subsidy for Development of Aerospace and Defence Industrial Parks
- An infrastructure subsidy at the rate of 10% of the fixed asset which is subjected to the maximum ceiling of Rs.10 crores will be given for the development of aerospace and defence industrial parks with a minimum of 50 acres.
- In addition to the above, the development of aerospace or defence parks located in the Southern districts will be given an additional capital subsidy of 50% over the limit prescribed above.
Electricity Tax Exemption
Aerospace and Defence industrial units will be provided with a 100% exemption on electricity tax on power purchased from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).
Stamp Duty Concession
Under stamp duty concession, 50% reimbursement of stamp duty on sale or lease of land will be provided for aerospace or defence projects located in the aerospace, industrial and defence parks promoted by SIPCOT or TIDCO. In case of aerospace or defence units located in aerospace, industrial and defence parks of southern districts, 100 % stamp duty will be reimbursed. For the computation of stamp duty or property in such industrial parks will be valued at the actual land cost paid by the manufacturing units to such industrial parks.
Environment Protection INfrastructure Subsidy
Hazardous Waste Treatment Storage and Disposal Facility and Dedicated Effluent Treatment Plants (ETP) set up by the manufacturing units will be eligible for environment protection infrastructure subsidy at the rate of 25% of the capital cost which is limited to the maximum amount of Rs.1 crore will be offered.
Labour Sector Initiative
Under this initiative, flexibility in labour laws will be adopted subject to Industrial Employment (Standing Orders) Act, flexibility in employment conditions which include flexible working hours for women, 24/7 operations with 3 shifts, employment of women in the night shifts and flexibility in hiring contract labour will be entertained.
Support for the Units Undertaking Offset Obligations
New or Existing manufacturing units which are undertaking projects under the offset obligations requirement of the Ministry of Defence will be provided with special package of incentives, concession up to 30% from the land cost and 100% reimbursement from stamp duty on lease or sale will be given for the land located in the aerospace or defence parks or industrial parks promoted by SIPCOT or TIDCO located anywhere in the State.
Special Initiative
The project from private industries with the combined responsibilities of development, design, manufacturing, testing and certification in the State will be considered as a special initiative, and the Government would sanction special funding in partnership with Tamil Nadu Industrial Development Corporation Limited (TIDCO).
Implementation of Incentives
The State Industries Promotion Corporation of Tamil Nadu will act as the implementing agency for the disbursement of various incentives as listed in the policy.