Jaipur, March 21 (NationPress) The unveiling of the Rajasthan Aerospace and Defence Policy - 2026 by Chief Minister Bhajan Lal Sharma marks a pivotal moment for the state, setting it on a path to significantly contribute to India's quest for strategic autonomy.

This new policy aims to position Rajasthan as a central hub for the production of aircraft, helicopters, drones, missiles, avionics, satellite buses, armoured vehicles, radars, navigation, communication, control systems, robotics, and defence electronics, thereby reinforcing the Make in India initiative.

To stimulate investment, the policy introduces a wide-ranging array of financial and non-financial incentives, in addition to ready-to-use infrastructure, skill enhancement programs, and expedited approvals, according to officials on Saturday.

The objective is to create a globally competitive framework that fosters manufacturing, research, testing, and services throughout the aerospace and defence supply chain.

It actively promotes involvement from Original Equipment Manufacturers (OEMs), system integrators, MSMEs, start-ups, and educational institutions. This initiative is also in sync with major national policies, including the Defence Production and Export Promotion Policy (DPEPP), iDEX, Atmanirbhar Bharat, and Make in India.

With a robust industrial infrastructure, enhanced by connectivity via the Delhi-Mumbai Industrial Corridor, a comprehensive network of national highways, ample land availability, and access to essential metals, Rajasthan is poised to attract significant aerospace and defence investments.

The metal machining industry, comprising facilities dealing with steel, copper, and brass, will be vital in producing ammunition and defence components. Furthermore, the state's dynamic automotive sector will facilitate the provision of mechanical and electronic parts.

Projects will be classified into large, mega, and ultra-mega categories under the new policy.

For manufacturing, large projects will range from investments of ₹50 crore to ₹300 crore, mega projects from ₹300 crore to ₹1,000 crore, and ultra-mega projects exceeding ₹1,000 crore.

In the service sector, large projects will involve investments from ₹25 crore to ₹100 crore, mega projects from ₹100 crore to ₹250 crore, and ultra-mega projects surpassing ₹250 crore.

The policy offers flexibility in selecting from capital subsidies, investment grants, or turnover-linked incentives. Additional ‘top-up’ incentives are available for job creation, emerging sectors, anchor units, and key industries.

Key advantages include exemptions from banking, wheeling, and transmission fees, adjustable land payment plans, and subsidies for office space leasing.

To bolster long-term industrial sustainability, the policy provides 100% exemption from electricity duty for seven years, full reimbursement of mandi fees for seven years, and a 75% exemption along with a 25% reimbursement on stamp duty and land conversion fees.

Moreover, additional measures for green initiatives, skill training, and intellectual property development further enhance the policy's appeal.

Under the leadership of Prime Minister Narendra Modi, there has been substantial growth in India's defence and aerospace sectors, propelled by reforms like transparent procurement practices and improved business conditions, as mentioned in a statement.

These initiatives have strengthened local production capabilities and advanced the aim of strategic independence.

India has showcased impressive potential in aerospace manufacturing, with successful platforms like the LCA Tejas, ALH Dhruv, and Sukhoi-30. The Make in India program has also fostered robust partnerships between international aerospace companies and domestic firms, creating a solid ecosystem of Tier-1, Tier-2, and Tier-3 suppliers.