Four firms in UP Defence Corridor project lose land allotment over investment default

Among the cancelled allotments is M/s Kungarmar Private Limited, which was allotted land in 2021 at the Kanpur node for defence textile manufacturing. Officials said the allotment was cancelled as it failed to pay multiple installments and annual lease rent.

“Even after nearly five years, the company did not submit its building plans to UPEIDA. Authorities noted that repeated notices issued since 2021 failed to elicit any meaningful compliance,” an official said.

At the Aligarh node, three land allotments were cancelled.

According to officials, M/s P2 Logitech Private Limited, which proposed to manufacture optical sights, defaulted on dues and failed to initiate any construction activity.

“Despite being served recovery notices and offered opportunities for personal hearings, the firm neither cleared outstanding payments nor showed progress,” an official said.

M/s Tractrix Opto Dynamics LLP, which was allotted land for precision optical equipment manufacturing, did not submit mandatory building plans or begin project execution. The company was issued multiple notices, including show-cause notices between 2023 and 2025, but failed to meet compliance requirements, officials said.

In another case, M/s Milkor Defence Private Limited, which had proposed a facility for manufacturing grenade launchers, also failed to adhere to lease conditions, including timely payment of dues and development progress. Repeated correspondence and hearing opportunities did not result in corrective action, leading to cancellation, officials said.

Due process was followed in all cases, with sufficient time and opportunities provided to the allottees to fulfill their obligations, officials said, adding that the cancellations are part of a broader strategy to ensure that only serious and capable investors occupy land within the corridor.

The UP Defence Industrial Corridor, a flagship project of the state government, aligned with the Centre’s Atmanirbhar Bharat initiative, spans six key nodes — Lucknow, Kanpur, Jhansi, Aligarh, Agra, and Chitrakoot. It is designed to create a robust ecosystem for indigenous defence production by offering subsidised, pre-developed land, plug-and-play infrastructure, and strong connectivity to major logistics networks.

Officials said  that timely execution of projects within the corridor is critical not only for attracting further investment but also for strengthening domestic supply chains, building advanced manufacturing capabilities, and generating large-scale employment.

A comprehensive review meeting was held on March 19 under the chairmanship of Additional Chief Executive Officer Shashank Chaudhary at UPEIDA headquarters in Lucknow. The meeting assessed the status of industrial units across Lucknow, Kanpur, Aligarh, and Jhansi, with a sharp focus on delays in building plan approvals, lease execution, and physical possession of plots.

During the review, officials identified several allottees who had failed to submit building plans despite allotments being made years back. Directions were issued to serve notices to such investors, with clear instructions that failure to comply within stipulated timelines would invite cancellation proceedings.