Aerospace and Defence Manufacturing Policy 2018
The Aerospace & Defence Manufacturing Policy 2018 is run by the Government of Maharashtra through its Department of Industries (now under Industry, Trade & Investment Facilitation) and was notified in 2018 (effective from that year) with the objective of promoting the State as a preferred destination for aerospace & defence manufacturing. The purpose of this policy is to attract major investments in the aerospace and defence sector, develop indigenous manufacturing capabilities, enhance R&D and skill-development, promote exports and create employment in Maharashtra. As an MSME, your business can benefit by locating operations in this sector/cluster and availing incentives, regulatory relaxations and ecosystem support under this policy.
Key Features
- Thrust sector / Anchor & Mega Units: The policy recognises A&D manufacturing as a thrust sector. Units that meet the criteria of a “mega project” (e.g., large Fixed Capital Investment (FCI) or employment) will be treated as anchor units and eligible for elevated incentives.
- Fiscal incentives & support: While general incentives under the State’s industrial policies (such as the Package Scheme of Incentives, PSI) apply, this policy provides that A&D units will be eligible at a “one-step higher” zone classification and/or special ceilings for incentives. Activities such as test-ranges, MRO, CFCs etc are specially covered.
- Land & infrastructure support: The State offers land in industrial areas (via Maharashtra Industrial Development Corporation (MIDC) or other agencies) at discounted rates for qualifying units; also provides for defence parks, township and large land parcels for A&D manufacturing.
- R&D / testing / incubation: The policy specifically encourages the setting up of R&D centres, test ranges, component test labs, incubation centres within the State and provides incentives for them (e.g., assistance up to 50% of project cost) for A&D units.
- Marketing / export / MSME support: The policy supports MSMEs in A&D through marketing assistance to participate in international trade fairs, cluster support, and venture funding for CFCs/cluster schemes in the A&D sector.
- Ease of doing business / regulatory relaxations: The policy provides for single-window facilitation via the State’s investment cell (MAITRI), labour and environment relaxations (for certain assembly operations), thereby reducing regulatory burden for A&D units
- Ecosystem & skill-development: Recognising that A&D is complex, the policy emphasises skill-development, creation of a meaningful value chain in Maharashtra, growth of MRO, integration with national defence clusters and export focus.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Units engaged in aerospace or defence manufacturing, MRO, design/testing, and related value-chain activities, located in Maharashtra.
- New projects or expansions/modernisation of existing units in the A&D sector that meet investment, employment and technology norms specified under the policy.
Who Cannot Apply:
- Projects outside the state of Maharashtra.
- Projects not aligned with the aerospace & defence manufacturing value-chain as defined in the policy (for example, purely trading enterprises).
- Units not fulfilling compliance with environmental, land-use or regulatory norms as required under the policy
Documents Required
- Legal entity registration and licence details.
- Detailed Project Report (DPR) covering investment, value-chain stage, technology, employment.
- Land/lease documents and building plan approvals (if applicable).
- Machinery/equipment purchase estimates and timelines.
- Employment commitments and training/skill-development plan.
- Bank account, PAN/GST certificate, audited financials (if applicable).
- Environmental clearance or consents (if applicable).
- Ownership/beneficiary documents if MSME, women/SC/ST minority status claimed.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Government Process
- Visit the MAITRI portal or relevant department’s site.
- Download the application form for Aerospace & Defence Manufacturing Policy 2018.
- Submit the proposal including project details (investment, employment, technology, value-chain linkage).
- The state-level committee reviews the application; once approved, sanction and incentives are issued as per policy.
- Post-approval compliance must be maintained (investment milestone, employment, value addition) for incentive disbursement.
Option 3: Offline Submission
If online process is not accessible, submit physical application with attachments to the District Industries Centre or nodal department in Maharashtra, and follow updates via the MAITRI portal or nodal office.
