Defence Industrial Corridors (DICs)

Defence Industrial Corridors boosts the defence manufacturing ecosystem through synergistic development of technologies, promote the growth of private domestic manufacturers, including MSMEs and Start-Ups. 

Latest Update: Tamil Nadu and Uttar Pradesh have acquired land to build two  Defence Industrial Corridors (DIC).

This topic is important for GS-III. Aspirants would find this topic very helpful while preparing for the IAS Exam.

What are Defence Industrial Corridors?

• Defence  Industrial corridor is a path in which domestic productions of defence equipment by the public sector, private sector and MSMEs are lined up to enhance the operational capability of the defence forces.
• It not only improves the connectivity of the defence forces but will also encourage domestic production of defence equipment and benefit all small and medium manufacturers along the corridor.

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Defence Industrial Corridor- Uttar Pradesh

Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) is the nodal agency that is working on setting up Uttar Pradesh Defence Industrial Corridor. It consists of the following six nodal points:

•  Agra
• Aligarh
• Chitrakoot 
• Jhansi
•  Kanpur
• Lucknow

Source- makeinindia.com

Plug and Play support will be provided to the industries in the corridor with the below-mentioned facilities:

• Assured water and uninterrupted electricity supply (132 KVA) along with pelican wire fencing boundary wall at the site. 
• Connectivity with 4-lane heavy-duty highway connected with Bundelkhand Expressway and Delhi-Jhansi.
• Single Window approvals and clearances to Defence and Aerospace (D&A) manufacturing units via Nivesh Mitra (single window system of the state).
• Labour permits for Defence and Aerospace (D&A) industry for flexible employment conditions. 
• Easy reimbursement of incentives and subsidies with Simple procedures and rationalised regulatory regime.

In the UPDIC, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), the nodal agency, has inked 55 Memorandum of Understandings (MoUs) with private industries, worth potential investments of Rs.7449.33 crore.

Defence Industrial Corridor -Tamil Nadu

Tamil Nadu Defence Industrial Corridor of Tamil Nadu consists of five nodal points. They are

• Chennai
• Coimbatore
• Hosur
• Salem
• Tiruchirappalli

Source- makeinindia.com

Advantages of Tamil Nadu to set up DIC

• Tamil Nadu has a long coastline of the length of 992 km, on which there are three major ports.
• The state of Tamil Nadu has four international airports and two domestic airports.
• Tamil Nadu is a power surplus state with a renewable energy capacity of 11,113 MW.
• The capital city Chennai is connected with the world via three submarine cables that provide a bandwidth of 14.8 Tbps.
• Tamil Nadu is the largest recipient of Korean Foreign Direct Investment (FDI) to India.
• In the TNDIC, the nodal agency, Tamil Nadu Industrial Development Corporation (TIDCO) has inked 22 MoUs with private/public industries which is worth potential investments of Rs.4800 crore.

Significance of DICs

• India is among the top 5 military spenders and one of the emerging defence manufacturing hubs in the world. DICs support the growth of the Defence sector and enhance manufacturing capacity in the sector.
• The Defence Industrial Corridors will catalyse indigenous production of defence and aerospace-related items promoting the Make in India program.
• This will reduce our imports and promote the export of these items to other countries
• The combined efforts of the Government and private players will help achieve India’s goal of self-reliance in defence
• DICs Generate direct and indirect employment opportunities and spur the growth of private domestic manufacturers, Micro Small and Medium Enterprises (MSMEs) and Star-ups.

(Source: makeinindia.com)

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