TheNFAPost Podcast

New Delhi, NFAPost: Central Government has established two Defence Industrial Corridors (DICs), one each in the States of Uttar Pradesh and Tamil Nadu respectively and land acquisition for the two corridors have been completed.

Uttar Pradesh Defence Industrial Corridor (UPDIC) has 06(six) identified nodes viz. Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow. Similarly, Tamil Nadu Defence Industrial Corridor (TNDIC) has 05(five) identified nodes viz. Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli.

To facilitate the public/private sector for investment in the two DICs, both State Governments have acquired lands at the identified nodes. The State-wise details of the land acquired by both the State Governments in the year 2020-21 are as follows:

Name of State Land Acquired in the year 2020-21 (in Hectare)

Uttar Pradesh 196.7853

Tamil Nadu 283.28

The establishment of the DICs aims at providing a fillip to the defence manufacturing ecosystem through synergistic development of technologies, promote growth of private domestic manufacturers, including MSMEs and Start-Ups.

At present, both DICs are in their formative stages. In the UPDIC, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency, has signed 55 Memorandum of Understandings (MoUs) with private industries, worth potential investments of Rs.7449.33 crore.

In the TNDIC, Tamil Nadu Industrial Development Corporation (TIDCO), the nodal agency, has signed 22 MoUs with private/public industries, worth potential investments of Rs.4800 crore.

As on 19 July, 2021, the total investment made by Public/private sector in the UPDIC and TNDIC are Rs.1236.10 crore and Rs.2252.28 crore respectively.

The production of armament/ammunition; components of aerospace industries; missile systems; and establishment of research & development facilities has been envisaged in the two DICs. Since the two DICs are in formative stages, it may not be possible to assess the numbers of likely employment.

However, as per present estimates reported by the respective State Governments based on MoUs signed by them with the Industries, the UPDIC has potential to generate employment for more than 16,700 persons, and the TNDIC has potential to generate employment for 25,000 persons in coming years.

Prime Minister Narendra Modi announced the establishment of 2 Defence Industrial Corridorsin April, 2018. The land acquisition information was given by Defence Minister Ajay Bhatt in a written reply to Rewati Raman Singh in Rajya Sabha on Monday.

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