Tamil Nadu launches Aerospace & Defence Industrial Policy

Projecting itself as the preferred destination for investments in the sector, Tamil Nadu on Tuesday released an exclusive Aerospace and Defence Industrial Policy with an aim to attract investments to the tune of Rs 75,000 crore in the next 10 years and provide jobs to nearly 1 lakh people.

Chief Minister M K Stalin released the Draft Tamil Nadu Aerospace and Defence Industrial Policy 2022 in the presence of Industries Minister Thangam Thenarasu, experts from the field, and US Consul-General Judith Ravin.

The policy says the aim is to make Tamil Nadu the preferred destination to invest, innovate and create products and services in the aerospace and defence sector while focusing on creating a robust, world-class, high technology, and efficient aerospace & defence (A&D) manufacturing ecosystem.

Officials said the aim is to attract global Original Equipment Manufacturers and Tier-1 suppliers and Indian majors as anchor units in the state by providing the required facilitation and support and fostering the ecosystem through the development of innovation centres and start-up hubs.

“The policy also focuses on channelizing the state’s strengths in automobile, electronics, precision manufacturing, heavy engineering, textile and related sectors to support the evolution of A&D ecosystem,” a senior official said.

At the event, Stalin also inaugurated the Tamil Nadu Smart and Advanced Manufacturing Centre (TANSAM) and Tamil Nadu Advanced Manufacturing Centre of Excellence (TAMCOE), while launching two Remote Pilot Training Organisations in Madurai and Coimbatore.

The policy, which will be valid till March 2026, lays focus on standard aircraft parts and drones, aircraft maintenance, repair and overhaul (MRO), missiles, rockets, ammunition, sensors, radars, communication, electronic warfare, small arms and assault rifles, and space.

To attract investments in the sector, the government has come up with a land cost incentive scheme which will enable allotment of land at a 20 per cent concessional rate in A and B category districts and at a 50 per cent concessional rate in C category districts.

“For private land in C districts, a 50 per cent subsidy will be offered on the cost of land as per guideline value up to an extent of 50 acres and subject to land cost not exceeding 20 per cent of EFA and a cap of Rs 2 crore provided that at least 70 per cent of the land is used for manufacturing operations,” the policy said.

Besides, the government has also offered a 100 per cent concession on stamp duty payable on the lease or purchase of government lands, and a complete exemption on electricity tax on power purchased from TANGEDCO or generated and consumed from captive sources for the first five years from the date of commercial production.