Rajasthan Unveils New Aerospace and Defence Policy to Attract Global Investments
In a significant move to boost economic growth, Chief Minister Bhajan Lal Sharma announced on Wednesday the newly notified Rajasthan Aerospace and Defence Policy. The policy is strategically designed to attract large-scale domestic as well as global investments to the state, positioning Rajasthan as a key player in these high-priority sectors.
Focus on Ecosystem Development and Job Creation
Speaking from Jaipur, Sharma emphasized that aerospace and defence have been identified as priority sectors for Rajasthan's next phase of development. "Our focus is on creating an ecosystem that supports manufacturing, innovation and employment," he stated. The policy aims to foster a conducive environment for businesses, driving technological advancements and generating substantial employment opportunities across the state.
Comprehensive Incentive Structure for Investors
The Chief Minister highlighted a range of incentives that his government is offering to investors under this new policy. Eligible aerospace and defence units in designated A&D Parks will receive asset creation incentives, including reimbursement of 75% of state taxes for up to 7 years, Sharma explained. This tax relief is expected to significantly reduce operational costs for companies setting up in Rajasthan.
Additionally, manufacturing units can opt for one of the following incentive packages:
- Capital subsidies ranging from 20% to 28% over a period of 10 years.
- Turnover-linked incentives of 1.2% to 2% annually for a decade.
For service-sector enterprises, the policy offers:
- Capital subsidies of 14% to 20%.
- Similar turnover-linked benefits to encourage growth and stability.
Project Classification Based on Investment Scale
To streamline support and benefits, the policy categorizes projects based on their investment scale. In the manufacturing sector:
- Projects with investments of Rs 50 crore to Rs 300 crore will be treated as large.
- Investments of Rs 300 crore to Rs 1,000 crore will be classified as mega.
- Projects above Rs 1,000 crore will be designated as ultra mega.
In the services sector, the classification is as follows:
- Projects with investments of Rs 25 crore to Rs 100 crore will be considered large.
- Investments of Rs 100 crore to Rs 250 crore will be categorized as mega.
- Those exceeding Rs 250 crore will be recognized as ultra mega.
This structured approach ensures that incentives are tailored to the scale of investment, promoting both small and large enterprises in Rajasthan's aerospace and defence landscape.
