UP Govt Signs Rs 25,000 Cr Defence Deals to Boost Manufacturing

The Uttar Pradesh government has finalized over 154 defence manufacturing agreements worth Rs 25,000 crore, aiming to strengthen India's defence exports and industrial capabilities.

In the fiscal year 2023-24, India's defence production surged to nearly Rs 1.27 trillion, marking a 16.7% increase from the previous year, as reported by the Ministry of Defence (MoD) on Friday. These initiatives are part of the ambitious UP Defence Industrial Corridor (UPDIC), spanning Lucknow, Kanpur, Jhansi, Aligarh, Chitrakoot, and Agra districts, projected to generate 40,000 new job opportunities.

"We have signed 154 Memorandums of Understanding (MoUs) with various companies, with an additional 85 deals in the pipeline under evaluation," said a senior UP government official. The UP Expressway Industrial Development Authority (UPEIDA) is acquiring substantial land parcels to allocate to industrial groups, having secured 1,700 hectares and allotted land to more than 40 companies. "These 42 companies are set to invest approximately Rs 8,000 crore, enhancing UP's pivotal role in India's drive towards self-reliance in defence production and boosting defence exports," the official added.

Among the key entities involved are Adani Defence and Aerospace, BrahMos Aerospace, Tata Technologies, Bharat Dynamics Limited, and DRDO. Uttar Pradesh aims to leverage its extensive MSME base to bolster 'Make in UP' initiatives and elevate its position in the defence manufacturing value chain.

The state has already delivered 35,000 Kalashnikov AK-203 assault rifles from the Korwa factory in Amethi district to the Indian Army, with plans for assembling nearly 600,000 rifles over the next decade. Additionally, a new joint venture in Lucknow will manufacture BrahMos missiles, a collaboration between DRDO and Russia's NPOM, aimed at developing advanced supersonic missiles for India's defence forces.

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