UP Defence Corridor set to realise Rs 50,000 cr investment potential

MoUs for investment worth Rs 12,000 crore already signed with private firms and institutions, says nodal chief

The Uttar Pradesh Defence Corridor is on track to realise its estimated investment potential of Rs 50,000 crore, former Air Chief Marshal R K S Bhadauria has said.

Bhadauria, who is now the Chief Nodal Officer of the UP Defence Industrial Corridor, said the state government has taken a slew of policy measures to actualise the potential of the mega project of national importance.

He said memoranda of understanding (MoU) for investment worth nearly Rs 12,000 crore had already been signed with private companies and institutional entities.

“Apart from the MoUs already signed, fruitful discussions are underway with other companies looking to invest in the Corridor,” he told Business Standard.

Bhadauria said efforts were being made to rope in anchor players and innovative startups to foster defence manufacturing ecosystem and a robust supply chain for maximising the benefits of the Corridor project.

The UP Corridor comprises six nodes, namely, Lucknow, Kanpur, Jhansi, Aligarh, Chitrakoot and Agra. So far, nodal agency UP Expressway Industrial Development Authority (UPEIDA) has acquired about 1,600 hectares of land for allotment to the private companies.

Besides, the state has suitably amended the UP Defence and Aerospace Employment Promotion Policy to woo the private sector defence players.

In fact, the Corridor is positioned as an important component for India to achieve desired self-reliance in defence and military ware production, and to become a net defence exporter through indigenous production, import substitution and tapping the lucrative export markets.

Meanwhile, among the prominent UP Defence Corridor projects, which have already been launched, include the Indo-Russian joint venture of BrahMos missile project in Lucknow. BrahMos is a joint venture between India’s Defence Research and Development Organisation (DRDO) Russia’s NPOM to develop next generation supersonic missiles for the Indian forces.

Moreover, the Adani Group had announced plans to develop South Asia’s largest integrated ammunition manufacturing facility spread over 250 acres. For the estimated Rs 1,500 crore project, Adani Defence & Aerospace has already signed an MoU with UPEIDA.

“Any defence corridor is a complex project and requires mutually supportive industries and linkages with segments such as training, skilling, education, human resources, warehousing etc. The private companies also need active support of the central and state governments,” Bhadauria opined.

However, he claimed the UP Corridor has been successful in attracting a number of startups working on innovative and novel technologies in the defence sector.

Meanwhile, the Yogi Adityanath government is planning to showcase the state defence manufacturing capability at the proposed UP global investor summit 2023, wherein the state has set the target of attracting investment of Rs 10 trillion.

“The defence spectrum will play a vital role in the summit and we are tentatively targetting to net fresh investment of Rs 30,000 crore in the defence manufacturing sector,” Bhadauria added.

Leading defence manufactures from the US, Europe and Russia are expected to participate in the summit to be held on February 10-12, 2023 in Lucknow.

Some top companies include US missile company Northrop Grumman; UK’s missile launch systems and ammunition maker BAE Systems; German rifle company Umarex; Swedish firm SAAB, which makes Carl Gustaf M4 rifles; Russia’s Almaz-Antey, which is among the top military hardware exporters; France’s Dassault Aviation which manufacturers Rafale jets; and Israel Weapon Industries (IWI) which makes unmanned aerial vehicle helicopter systems.