New Delhi: The Yogi government of Uttar Pradesh is set to launch a transformative scheme this month to position the state as a major hub for the aviation industry. Spanning one thousand acres of land near the Noida International Airport Limited (NIAL) under construction in Jewar, the scheme will focus on establishing assembling and manufacturing units for airplane parts and complete aircraft.
Indian companies, alongside several foreign firms, including those from the United States, are keen to set up their units in this ambitious initiative. Notably, NIAL is in the process of building Asia’s largest airport in the area. The establishment of an aviation manufacturing hub has the potential not only to enable India to conduct aircraft repairs domestically but also to provide maintenance and repair services to international aircraft, eliminating the need to send planes abroad for repairs.
According to Arunvir Singh, the CEO of Yamuna Expressway Industrial Development Authority (YEIDA), the acquisition of 1,365 hectares of land in the second phase of Noida International Airport is ongoing. This area will be developed as a Maintenance Repair and Overhaul (MRO) and an Aviation Hub. The aviation hub will comprise individual units, each spanning five acres, with larger plots available for anchor units. An Aviation Manufacturing Scheme will be introduced to encourage aeroplane assembling companies, engine manufacturing firms, nozzle manufacturing companies, and other aircraft equipment manufacturing firms to establish their units.
Singh mentioned, “Numerous companies are eager to invest in this project, and discussions and meetings have already taken place with many companies through the American Embassy.”
Foreign companies stand to benefit from the recently issued Uttar Pradesh Cabinet FDI policy, which offers incentives, including a 75 percent land subsidy, capital subsidies up to Rs 100 crore, a 100 percent state GST reimbursement for a decade, and financial support of Rs 5,000 for seven years for up to 500 individuals involved in patenting, training, and skill development. Customs exemptions for equipment imports from foreign countries are also part of the policy, presenting an attractive opportunity for aviation hubs and foreign investment.
The layout development for the aviation manufacturing industry at Jewar International Airport has been entrusted to PwC. Once the layout is ready, a meeting of the NIAL Board will convene to decide on the scheme’s implementation. This initiative is expected to generate employment opportunities and realize the vision of establishing an aviation manufacturing and MRO hub in Uttar Pradesh.
