A Strategic Initiative for Self-Reliance
The Uttar Pradesh Defense Industrial Corridor (UPDIC) is a significant project aimed at establishing Uttar Pradesh as a major hub for aerospace, defense, and military equipment production in India. This initiative aligns with the Indian government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ (self-reliant India) objectives, seeking to reduce import dependency and stimulate regional economies.
Key Project Details
- Announcement: Launched in the 2018-2019 Union Budget by Prime Minister Narendra Modi.
- Lead Agency: Uttar Pradesh Expressways Industrial Development Authority (UPEIDA).
- Projected Investment: Approximately ₹35,000 crore.
- Job Creation: Expected to generate over 52,000 direct and indirect jobs.
- Investment Progress (as of September 2025): Proposals reaching ₹33,896.16 crore.
- Planned Defense Projects: Over 100 projects valued at ₹23,000 crore for accelerated development.
- Current Status: 62 companies allotted land across six nodes; nine units are operational.
Vision and Ecosystem
The UPDIC aims to create a comprehensive ecosystem for defense manufacturing, encompassing research and development, production, and testing. This involves:
- Developing state-of-the-art infrastructure.
- Attracting leading defense firms.
- Fostering skill development.
- Integrating Micro, Small, and Medium Enterprises (MSMEs) and startups into the defense supply chain.
Strategic Nodes
The corridor is structured around six key nodes, each with specialized development and “plug and play” infrastructure (assured water, uninterrupted 132 KVA electricity, secured facilities, and excellent highway connectivity).
1. Aligarh
- Focus: Advanced electronic warfare systems and satellite technology.
- Investment: ₹3,300 crore slated for projects.
- Employment: 5,500 people employed.
- Key Companies: Amitec Electronics Ltd. (₹330 crore investment in satellite space ports and electronic warfare systems), Werywin Defence Pvt Ltd (₹65 crore for small arms manufacturing), Nitya Creations India, Ancor, Milkor, New Space.
- Infrastructure: Located in Andla, Khair, spanning over 90 hectares. 24 companies allotted land. UPEIDA investing over ₹122 crore in infrastructure. Phase-II expansion planned (87.888 hectares for 2026-2027).
2. Agra
- Focus: Pollution-free defense industries, sensitive due to proximity to the Taj Mahal.
- Investment: ₹709 crore in proposals.
- Infrastructure: UPEIDA procured 41 hectares (Phase 1) and 81.68 hectares (Phase 2). ₹120.98 crore for internal infrastructure development.
- Targeted Industries: Electronic equipment, radar, leather and plastic products, software technology.
- Common Facility Centre (CFC): A proposed ₹500 crore defense-based CFC for Aligarh/Agra node to foster skill development for startups and MSMEs.
3. Chitrakoot
- Focus: Diverse defense products.
- Investment: ₹530 crore in proposals.
- Land: Over 328 hectares procured across two phases. Land allotment underway.
- Envisioned Products: Land systems, various caliber weapons, explosives, battle tanks, armored vehicles, helicopters, unmanned aerial systems (drones), electronic warfare systems.
- Job Creation: Expected to create approximately 15,200 job opportunities.
4. Jhansi
- Focus: Ammunition and explosives manufacturing.
- Investment: Exceeding ₹11,276 crore.
- Key Investments:
- Navbharat Defence Systems Pvt Ltd: ₹322.2 crore for high explosives (TNT, RDX) production (expected late 2025).
- Bharat Dynamics Limited (BDL): ₹400 crore missile propulsion systems facility.
- Delta Combat Systems Limited: ₹150 crore ammunition unit for assault and sniper rifle cartridges.
- Global Engineers Limited: ₹2,300 crore for nitrocellulose, nitroglycerine, and propellants.
- Other Companies: Ferreterro India Pvt Limited (aircraft arrester nets, tank chains), Savarn Infratel Pvt Ltd (EMC shelters), drone manufacturers, and detection system companies.
- Common Facility Centre: Tata Technologies proposed a ₹500 crore CFC.
5. Kanpur
- Focus: Aerospace and ammunition production.
- Investment: ₹12,803.58 crore (highest among nodes).
- Key Investments:
- Adani Defence Systems and Technologies Ltd.: South Asia’s largest integrated arms and ammunition manufacturing facility (operational since Feb 2024, initial ₹1,500 crore investment). Expanding small-calibre ammunition capacity to 300 million rounds annually; planning missile and warhead integration unit.
- Genser Technologies: ₹3,000 crore for light transport aircraft manufacturing.
- Anant Technologies: ₹3,500 crore for Uttar Pradesh’s first plant for LEO and GEO satellites.
- Other Production: Ballistic materials, safety gear, defense textiles, artillery shells.
6. Lucknow
- Focus: Missile systems and advanced materials.
- Land Allotment: 16 companies allotted over 131 hectares.
- Key Investments:
- Aerolloy Technologies: ₹320 crore for titanium casting operations for aerospace and defense.
- DRDO’s BrahMos Aerospace: ₹300 crore facility for production and assembly of BrahMos NG missile system.
Policies and Incentives
The “UP Aerospace and Defence Unit and Employment Promotion Policy 2024” aims to attract ₹50,000 crore in investments and create one lakh jobs over five years. Key incentives include:
- Land Subsidies: 25% for anchor units, up to 80% for foreign companies in notified areas.
- Capital Subsidies: 25% in Western/Central UP, 35% in Bundelkhand/Purvanchal.
- Tax Exemptions: 100% stamp duty exemption, transportation charge exemptions.
- MSME & Startup Support: Common facility centers for skill enhancement.
- Ease of Doing Business: Single-window system supervised by the Chief Minister’s Office, promoting self-certification.
- FDI Policy: Aligns with national FDI limits (74% automatic, 100% government route in defense).
- R&D and Skill Development: Support for AI and software development, R&D assistance, Centers of Excellence (CoE), and Skill Development Centres.
The UPDIC is positioned as a strategic national asset contributing to India’s defense self-reliance, economic growth, and technological advancement.
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