UP Defence Corridor Boosts Industrial Growth with ₹25,000 Crore Investment through 154 MoUs

India Defense

UP Defence Corridor Boosts Industrial Growth with ₹25,000 Crore Investment through 154 MoUs

The Uttar Pradesh (UP) Defence Industrial Corridor has emerged as a cornerstone of India's ambitious defence manufacturing landscape, attracting over ₹25,000 crore (approximately $3 billion USD) through 154 Memorandums of Understanding (MoUs). This strategic initiative aligns with India's record-breaking defence production, which soared to ₹1.27 trillion ($15.4 billion USD) in the fiscal year 2023-24, marking a significant 16.7% increase from the previous year.


Spanning six key districts including Lucknow, Kanpur, Jhansi, Aligarh, Chitrakoot, and Agra, the UP Defence Industrial Corridor is set to create approximately 40,000 new jobs, bolstering the state's economic fabric.


Strategic Location and Job Creation

The Kanpur node, a pivotal part of the UP Defence Industrial Corridor, stands out with substantial investments aimed at enhancing India's self-reliance in defence manufacturing. Covering over 218 hectares in Narwal Tehsil, Kanpur, this node has already seen 24 companies expressing interest, with several already operational. Notably, the Adani Group has launched a ₹1,500 crore ammunition manufacturing facility, catering to small, medium, and large-calibre ammunition needs.


Key Investments and Operations

Various companies are making substantial investments in UP's defence infrastructure. Modern Material and Sciences Pvt. Ltd. has invested ₹38 crore for advanced soldier attire, while Netra Global Pvt. Ltd. and Anant Technologies are investing ₹360 crore and ₹3,500 crore respectively for artillery shells and satellite-related equipment.


Infrastructure Development

To support these initiatives, the UP government has allocated over ₹62 crore for infrastructure development in Kanpur alone. More than 210 hectares of land have been earmarked, with investments exceeding ₹1,700 crore already in play, creating immediate employment for 2,500 individuals.


Ongoing Projects and MoUs

Currently, ongoing projects valued at ₹33 crore have been completed, with construction underway for projects valued over ₹16 crore. Additionally, tender processes are progressing for projects exceeding ₹13 crore. The UP government has signed 154 MoUs with companies, with another 85 under evaluation, highlighting robust investor confidence in the corridor.


Government Commitment and Strategic Milestones

Union Defence Minister Rajnath Singh recently lauded India's highest-ever defence production growth under the Make in India initiative, emphasizing the country's aspiration to become a global defence manufacturing hub. This growth underscores the contributions from Defence Public Sector Undertakings (DPSUs), other PSUs, and private industry players.


Rising Defence Exports and Industry Recognition

India's defence exports surged by 32% to ₹21,083 crore ($2.5 billion USD) in 2023-24, with UP leveraging its extensive MSME base to propel the "Make in UP" initiative. The delivery of 35,000 AK-203 assault rifles from the Korwa factory in Amethi district and the upcoming BrahMos missile plant in Lucknow further cement UP's role in enhancing India's defence capabilities.


Uttar Pradesh's strategic focus on defence manufacturing, coupled with robust industrial infrastructure and a skilled workforce, positions the state as a pivotal player in India's journey towards defence self-reliance and a significant contributor to the global defence market.


This comprehensive approach underscores UP's commitment to fostering industrial growth through strategic defence partnerships, paving the way for a resilient and self-sufficient defence ecosystem in India.

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