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Tamil Nadu Aerospace & Defence Industrial Policy 2019

Aerospace & Defence

Tamil Nadu Aerospace &
Defence Industrial Policy 2019

10 min read

This Policy is applicable for Aerospace & Defence Industrial units that are engaged in designing, engineering, manufacturing, servicing, supplying such material/components/ sub-assemblies, etc. fully or partially to the OEMs/Tier I/Tier II/Tier II companies of Aerospace/Defence Industrial majors including HAL, ISRO, all Defence PSUs of GOI, all defence & security forces viz., Army, Navy, Air Force, Coast Guard, CRPF, State Police Department, etc.; and construction of MRO Aircraft Hangers.

Contents

Policy Targets

Incentives

Policy Targets

The Tamil Nadu Aerospace & Defence Industrial Policy 2019 aims to attract an estimated investment of about 5 Billion USD in 5 years period and 10 Billion USD in 10 years period in Aerospace and Defence sector.

5 Billion USD

Estimated Investment

in 5 years Period

10 Billion USD

Estimated Investment

in 10 years Period

Incentives

Anchor Unit Subsidy

Subsidy for Skill Development

Subsidy for Certification Process

Subsidy for Allotment of Land

Capital Subsidy for Units

Capital Subsidy for Industrial Parks

MRO Facilities

10% of EFA subject to ceiling of INR 10 Crore to each of first 10 investors

INR 50 crores

Minimum investment

50 persons

Minimum employment

3 years

Min. Investment period

Up to Rs.10,000 per month per trainee for up to 50 trainees for a unit

50% the cost of certification subject to a ceiling of Rs.25 lakhs to a company

20% concession on actual land cost for lands allotted within 3 years from date of announcement of this policy.

Investment upto Rs. 10 crore: Back ended capital subsidy at the rate of 10% of EFA in 10 equal instalments in 5 years
Investment range of Rs.10 cr to Rs. 300 crore: Back ended capital subsidy at the rate of 5% of EFA in 5 equal instalments in 5 years (subject to ceiling of Rs. 10 crores).
50% Additional capital subsidy applicable for southern districts

Capital subsidy of 10% of EFA subject to ceiling of Rs. 10 crore for development of Industrial parks (minimum of 50 acres)
50% Additional capital subsidy for development of Industrial parks in southern districts

50% net SGST paid by MRO operators in the state will be refunded.

Incentives

Anchor Unit Subsidy

10% of EFA subject to ceiling of INR 10 Crore to each of first 10 investors

INR 50 crores

Minimum investment

50 persons

Minimum employment

3 years

Min. Investment period

Subsidy for Skill Development

Up to Rs.10,000 per month per trainee for up to 50 trainees for a unit

Subsidy for Certification Process

50% of the cost of certification subject to a ceiling of Rs.25 lakhs to a company

Subsidy for Allotment of Land

20% concession on actual land cost for lands allotted within 3 years from date of announcement of this policy.

Capital Subsidy for Units

Investment upto Rs. 10 crore: Back ended capital subsidy at the rate of 10% of EFA in 10 equal instalments in 5 years
Investment range of Rs.10 cr to Rs. 300 crore: Back ended capital subsidy at the rate of 5% of EFA in 5 equal instalments in 5 years (subject to ceiling of Rs. 10 crores).
50% Additional capital subsidy applicable for southern districts

Capital Subsidy for Industrial Parks

Capital subsidy of 10% of EFA subject to ceiling of Rs. 10 crore for development of Industrial parks (minimum of 50 acres)
50% Additional capital subsidy for development of Industrial parks in southern districts

MRO Facilities

50% net SGST paid by MRO operators in the state will be refunded.

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