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Karnataka has unveiled its ‘ Aerospace Policy 2013-2023’ which aims to attract investment worth Rs 60,000 crore.
The policy was unveiled by Karnataka Chief Minister Jagadish Shettar in the presence of Union Defence Minister A.K. Antony on Wednesday. The State plans to attract investment of Rs 60,000 crore ($10 billion) over the next 10-year period in two phases, i.e., 2013-18 and 2018-2023.
In phase I, it plans to attract investments to the tune of Rs 24,000 crore ($4 billion) and create employment opportunities (both direct and indirect) for about 40,000.
In phase II, it plans to attract investment of Rs 36,000 crore ($6 billion) and create jobs for 60,000 people.
The Government, through the PPP route, is planning to establish aerospace parks at Mysore, Hubli, Mangalore and Belgaum in phases. In addition to manufacturing, the Government is also exploring creation of maintenance repair and overhaul (MRO) facilities in Bangalore and Mysore. The State Government is planning to give emphasis on MSMEs. For MSMEs, payment of cost towards KIADB land will be considered in instalments, with 40 per cent as upfront and the balance in 12 equal instalments
The policy plans to create an aerospace eco-system across the State by setting up three clusters in Bangalore-Mysore-Mangalore, Davangere-Chitradurga and Belgaum-Bidar.
The State Government is planning to invest close to Rs 200 crore in developing clusters. And it is also planning to invest Rs 50 crore for setting up aerospace research and innovation centre at Chitradurga, Rs 50 crore for Aerospace and Aeronautical University at Davangere, Rs 50 crore for flying training school at Davangere, Rs 20 crore for Aerospace Training institute with IIF training centre and Rs 20 crore for manufacturing cluster at Belgaum.
Incentives and concessions
For development of aerospace industries in Karnataka, the Government, without any zonal restrictions, is offering subsidy for anchor units.
Anchor unit subsidy of Rs 5 crore is being offered to the first ten aerospace OEM enterprises with a minimum investment of Rs 50 crore and direct employment of 100 people during the policy period.
Exemption from stamp duty and concession has also been offered to aerospace companies, with full exemption of electricity duty/tax for aerospace units.
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