A significant milestone in the aerospace industry is on the horizon as plans are set to bring an aircraft manufacturing industry to Uttar Pradesh, India. This endeavor will include the assembly and production of complete aircraft and their components on a sprawling one-thousand-acre site adjacent to the Noida International Airport Limited (NAIL) in Jewar.

This ambitious initiative has garnered the interest of both Indian and international companies, including those from the United States, looking to establish their units. The proposal for this aviation manufacturing hub is expected to be presented this month.

Units on 5-Acre Parcels Near Jewar Airport

Arunveer Singh, CEO of the Yamuna Expressway Industrial Development Authority (YEIDA), has outlined the vision for this project. The NAIL, set to be Asia’s largest airport, will provide a platform for aircraft repairs and maintenance, not only for Indian planes but also for aircraft from other nations. Currently, India has to send its planes abroad for repairs.

In the second phase of the development of the Noida International Airport, 1,365 hectares of land are earmarked for the creation of a Maintenance Repair and Overhaul (MRO) and Aviation Hub.

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The “NAIL” has decided to construct this aviation hub, with units each occupying five acres of land, along with some larger plots to accommodate anchor units. An Aviation Manufacturing Scheme will be introduced to facilitate the establishment of aircraft assembly companies, engine manufacturers, nozzle producers, and other aircraft equipment manufacturers. Preliminary discussions have already taken place with several companies, including those facilitated by the U.S. Embassy.

Foreign Companies Stand to Benefit from FDI Policy

Foreign companies considering involvement in this aviation hub will be able to take advantage of the recent Foreign Direct Investment (FDI) policy approved by the Uttar Pradesh Cabinet. Under this policy, foreign companies will receive several incentives, including a 75% land subsidy, capital subsidies of up to Rs 100 crore, a 100% state Goods and Services Tax (GST) reimbursement for ten years, support for patenting, personnel training, and skill development, with the government providing Rs 5,000 for 500 employees over seven years. Additionally, customs exemptions will be granted for the import of equipment from other countries.

Arunveer Singh emphasized that this opportunity marks a significant step forward for the aviation industry and foreign investment. Furthermore, the creation of a layout for the aviation manufacturing industry at Jewar International Airport has been entrusted to PwC, and once finalized, it will be presented at a NAIL Board meeting, opening doors for significant employment opportunities.