Maharashtra has become the first state in the country to unveil its draft policy on defence and aerospace, which is expected to bring five billion dollar investment and generate 1 lakh employment. The policy initiative under the banner of Make In Maharashtra was announced by Chief Minister Devendra Fadnavis in the presence of Union Defence Minister Manohar Parrikar on Saturday. The state government has also decided to create its own support fund of Rs 1,000 crore. Watch What Else is Making News Parrikar described Maharashtra’s initiative as a game changer and said the decision would play a significant role in augmenting the indigenous defence manufacturing sector in the country. Fadnavis said, “We expect $5-billion investment and 1 lakh job creation over a period of five years.” Indicating that objective of the government was to make Maharashtra the leading defence investment hub, the CM said, “Almost 25 per cent of the total ordinance factories of India are already located in Maharashtra. In that sense, we have an edge over the others in taking forward our defence and aerospace policies.” The draft policy which was presented for discussion with the investors also elicited some concerns related to laws and security aspects. The reluctance of financial institutions to lend funds to private players would be also looked into with MIDC, SIDBI pursuing the matter with SBI Capital and others. The focus on defence and aerospace projects would be Nagpur, Nashik, Pune and Aurangabad which are being developed into hubs. Whether it is manufacturing of defence equipment or combat aircraft in collaboration with global players, the centre’s policy to allow Foreign Direct Investment will be crucial in giving the sector additional boost. Parrikar said, “The centre will provide full support to the state’s defence policy. Fadnavis has taken the lead which is highly appreciable. The state with its political leadership, politics and good law and order provides a conducive atmosphere for drawing investors in the defence sector.”
