Land Acquired for Defence Corridor (Download PDF)

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Land Acquired for Defence Corridor

  • Recently, the Defence Ministry acquired land from Uttar Pradesh and Tamil Nadu state governments for Defence Corridors.

  • Total land acquired for Uttar Pradesh Defence Corridor is 1,182 hectares and for Tamil Nadu Defence Corridor is 1,537 hectares.

Defence Corridor Map showing nodal centres of Tamil Nadu and Ut

Defence Corridor Map showing nodal centres of Tamil Nadu and Ut

Defence Corridor Map showing nodal centres of Tamil Nadu and Uttar Pradesh

Overview

  • Since land is a state government, the Central government needs to acquire land from state governments to undertake central projects.

  • The Uttar Pradesh Defence Corridor has six nodal points- Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow.

  • Tamil Nadu Defence Corridor has five nodal points- Chennai, Hosur, Coimbatore, Salem, and Tiruchirapalli.

  • Other than acquiring land from Uttar Pradesh and Tamil Nadu, the government is taking many steps to increase investment in defence sector-

    • To promote the growth of Indian defence Industry the defence Procurement Procedure was revised in 2016 with specific provisions to boost domestic defence industry.

    • The ‘Strategic partnership (SP) ’ Model was notified in which Indian industries can tie up with international Original Equipment manufacturers (OEMs) so that domestic manufacturing infrastructure and supply chains are set up by technology transfer.

    • In ‘Buy and Make (Indian) ’ category, the Indian vendor acquires a required and specified quantity of OEM from a global player in Fully Formed (FF) state. Gradually, the indigenous production begins in a phased manner by Transfer of Technology (ToT) of critical technologies.

    • In ‘Buy and Make ’ category, specified quantities are acquired in Fully Formed state by a global vender, followed by phased transfer of critical technology by Transfer of Technology (ToT) and indigenous production through Indian Protection Agency (PA).

    • Now Foreign Direct Investment is allowed upto 49 % by direct route and beyond 49 % via government route.

    • In Feb-2018, a Defence Investor Cell has also been created under Defence Ministry which provides essential information along with addressing queries regarding procedure, regulatory requirements and opportunities for investment in defence sector in India.

    • The need of Industrial License for a number of parts and components has been done away with. Thus the defence product list which needed Industrial License has been rationalized.

    • The validity of Industrial License granted under IDR Act has also been increased from 3 years to 15 years.

- Published/Last Modified on: June 26, 2020

Defense

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